- Posted by Chris Carmen
- On May 5, 2015
When you’re searching for a home, you have to consider the costs that you may incur with realtors on the buying and selling side. But when tenants consider who they hire for leasing or buying office space, many don’t realize that tenant representatives never collect from you for their service. And that’s not the only benefit.
1. It’s free to you
To repeat. A tenant rep does not charge the tenant for services. All fees are paid by the landlord who does business with the tenant and rep. This is important because the tenant rep is not working for a particular landlord in to get property leased. Instead, the tenant rep works only for you and works only in the best interests of the tenant (you) when negotiating. In other words, it doesn’t matter to the tenant rep which landlord/property you select. Their sole responsibility is to you and your business.
2. It lets landlords know you are serious
Simply retaining tenant representation services will put the current landlord, and prospective landlords, on notice that you will be looking at other opportunities in the market. This encourages landlords to offer the most attractive terms for the lease renewal or on a lease for another property. Competition is good, especially when it comes to leasing office or industrial space.
Recommended for You: The Problem With Indianapolis Real Estate
3. Bidding war anyone?
An experienced tenant representative will often orchestrate a bidding war between several landlords so that through competition, you receive the best economic and business terms on your lease. The leverage created through this competitive environment is extremely valuable when negotiating the terms of your office lease.
4. You don’t know what you don’t know
A tenant rep will anticipate future needs for your business in the lease negotiations and will provide you with more leverage in the contract for what you want to do in the future, whether that be having first right of refusal on adjacent property, creating positive conditions for sub-leasing or staying in the space longer than your defined lease term. Because of the extensive experience of tenant representatives working with their tenant clients, they are able to anticipate a number of potential pitfalls that might not have occurred to the client.
The value that a tenant rep brings to the commercial tenant client levels the playing field with the landlords. In fact, it more than levels the playing field: it tips it in favor of the tenant. While landlords routinely secure the services of leasing agents to attain the best terms for them, tenants often do not have a professional advocate. This, of course, puts them at a distinct disadvantage during negotiations. Retaining the services of an experienced tenant rep simply puts a knowledgeable advocate in your corner before, during, and after negotiations.
Ready to begin the search for your office space? Let Carmen kick it off with a free assessment of available space.