10 Reasons You Need a Tenant Rep Broker for Commercial Leases
When searching for new commercial leases, both large and small businesses use the same trick to get the finest space at the best price with the best procedure: they enlist the assistance of a tenant representation broker. Professionals in commercial leases in real estate that specialise in assisting tenants of retail, office, or industrial space in locating and negotiating the best leases are known as tenant representatives. By using one, you can complete the task at little or no expense (typically the latter!), and you have a professional in your corner the entire time.
Licensed experts that assist clients with their real estate needs are commercial leases real estate brokers. Commercial brokers, as opposed to residential ones, deal in the sale and leasing of office, retail, industrial, apartment, and other kinds of properties. Many of them list buildings for sale or lease in collaboration with landlords. It’s likely that you have noticed their “for sale” and “for lease” signs while you stroll or drive along business corridors. Some assist investors in the purchase or sale of buildings they own with the intention of turning a profit. Some will work for anybody who will pay them.
A limited subset of brokers specialising in commercial leases real estate work with tenants. Tenant representatives, sometimes known as tenant rep brokers, are professionals who specialise in helping businesses just like yours locate the ideal space. Tenant representatives are knowledgeable about available spaces and how to negotiate a lease; they may not be experts at finding you an apartment complex to buy so you can collect rentals. In order to ensure that your tenancy runs as smoothly and financially as possible, many can also assist you in between transactions.
A professional tenant representative’s most important quality is that they represent you. Your representative has an obligation to you, but the brokers you see on signs are typically recruited exclusively to represent the landlord (though they are more than happy to “help” you out). They act as fiduciaries in the majority of states, which means they must attend to your needs as though they were their own. This indicates that, similar to the landlord, you have allies in your corner.
Here are ten reasons why you need a tenant representation broker for commercial leases, now that you know what a tenant representative can do for you generally.
When looking to rent an office space, a lot of people, including business owners, believe that tenant representative brokers are a needless investment. However, this is untrue! To begin with, since the landlord covers the tenant representative broker’s expenses, the search process isn’t made more expensive. Every step of the search and negotiating process can benefit greatly from the assistance of a tenant representative. The following are the top ten reasons you need a tenant rep broker for commercial leases:
1. You may not fully recognize your needs?
2. Hidden and Exclusive spaces await
3. Time Sensitivity
4. The Big Bad “Landlord”
5. You won’t need to break out your dictionary
6. You may need a bigger “Team”
7. The Market
8. Commercial Leases are very Complex
9. Lease negotiations
10. Leverage
1. You may not fully recognize your needs?
Companies frequently move into offices thinking the space is perfect and the amount they have is more than enough, only to discover later that they underestimated their needs. Tenant representation brokers can assess your demands and match you with the perfect place thanks to their extensive experience. The greatest thing you can do is to be open and honest about your objectives, as well as to clearly state your goals for the next five to ten years.
2. Hidden and Exclusive spaces await
The greatest retail and office spaces are frequently snapped up before they are even publicised. Due to their “connections,” tenant representatives are aware of the best properties and can secure you a space before it is listed for sale. Has your tenant representative worked in the market before? Not every spot is available on Loopnet!
3. Time Sensitivity
Finding available premises to rent, investigating them, and setting up tours takes time. You can delegate those tasks to a tenant representation broker so that you can focus more of your time on running your business. It’s worth putting your trust in a highly skilled tenant representation broker (CCIM list)!
4. The Big Bad “Landlord”
It doesn’t matter if your landlord is moral; they still don’t work for you. Landlords almost never fail to try to get bargains that work in their favour. By standing up for you, tenant reps can help level the playing field. The following are just a few of the small underlying problems that I see landlords try to take advantage of: rent, liability, default, and expenses.
5. You won’t need to break out your dictionary
You’ll come across phrases in commercial leases negotiations that you’ve probably never heard of before. To make sure you comprehend every step of the procedure, tenant advocates can provide you with a clear explanation of what they mean.
6. You may need a bigger “Team”
You could need the assistance of an outside specialist during a commercial leases and leasing deal, such as an architect, a specialised solicitor, or a spatial planner. The accompanying costs will be justified by this.
7. The Market
Gaining a fair bargain at the negotiation table requires an understanding of the local real estate market, but it can be challenging to grasp the statistics that give you a picture of the market and illustrate patterns. Your tenant representation broker can assist you in gaining a comprehensive understanding of the current situation because they are well-versed in the market.
8. Commercial Leases are very Complex
Even though your lawyer will go over your commercial leases, it’s crucial that you comprehend the conditions. Tenant representation brokers can assist in simplifying complicated provisions because they have a great deal of knowledge with contracts. We still advise having your lease reviewed by an attorney.
9. Lease negotiations
A business lease transaction frequently involves numerous rounds of talks. Tenant representative brokers will be by your side every step of the way, facilitating a seamless transaction and guaranteeing that you receive the best possible bargain. They are also closely related, and mutual understanding between the parties can make a negotiation go much more smoothly.
10. Leverage
Tenants frequently find it difficult to establish and maintain power during lease negotiations. Tenant representation brokers can assist you in developing those crucial clauses in your lease by providing a broader view of the transaction. Base rent, tenant improvements, term, rent abatement, etc.
Conclusion
It can be difficult to find the ideal tenant representation broker, but I would suggest asking them to analyse your current lease and giving them a deadline to return your notes. If that broker is prepared to provide you with the time and attention you require, you will be able to tell.
For more information on commercial leases, visit us at Boardwalk India or at www.boardwalkindia.com