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Hiring a Tenant Representation Broker
Perhaps it’s always been your dream to start a business, and now you’re finally ready, or you wish to expand because profits have increased. Running a business is no easy feat- there are various aspects to consider and financial dealings to conduct. For instance, consider renting a commercial property to carry out your business affairs and manage your team. Finding an office, retail, or warehouse space while being unfamiliar with the area or market conditions can be expensive and time-consuming. If you’re trying to get the best deal available, you should hire a professional who will keep your best interests in mind. Keep reading as we explain why you should hire a tenant representation broker.
1. Properties Are Listed in Different Places
Navigating your way through listing sites won’t necessarily mean that you’ll get a clear picture of available properties. You might encounter the following problems:
2. Incomplete Information
Leasing firms’ websites for property search are usually up to date regarding all the details on commercial buildings. However, they’re not without their disadvantages. It takes a lot of effort and time to jump from site to site and compare all the building spaces for sale. It will distract you from investing in other essential business aspects and hinder your long-term plans.
3. Out of Date Information
There’s no doubt that going through listing forums and websites is a great way to gauge where the real estate sector stands and estimate how parameters like area, demand, and size can affect prices. Unfortunately, if you’ve been accessing free listing sites, you should keep in mind that many brokerage firms rarely ensure that their listings are up to date.
With a tenant rep broker by your side, you’ll get a hold of numerous resources that can help you solve the problems mentioned above and secure a list of quality real estate options.
4. Industry Connections and Complete Listings
There’s a good chance your representation broker has a well-established network, enabling them to quickly get updated on which buildings or areas have offers available. They’re known to maintain professional links with both landlords and leasing brokers, gaining access to comprehensive listing databases.
5. Off-Market Opportunities
Because of their solid connections, these professionals may also have access to information regarding options that have not yet been placed on the market. These include companies looking to sublease some or all of their property.
Your tenant rep will go the extra mile to find you listings best suited to your preferences and needs, doing all the grunt work and negotiating with sellers to get you the best possible price.
6. More Landlords Will Be Cooperative
The commercial real estate market has been experiencing major shifts in demand and supply, especially in the aftermath of the COVID-19 pandemic. It’s no longer a walk in the park to find an office space alone; landlords rarely return calls. You can call numerous numbers you’ve written down from ‘For Lease’ signs, but it’s rare to hear back. Landlords are typically busy individuals who don’t bother answering every call they receive.
It’s also possible that a landlord has hired their own landlord broker who prefers working with other brokers rather than clients themselves. A tenant rep has greater authority with landlords because their company and its reputation back them. Additionally, the leasing broker may already be working on projects with your tenant rep or has in the past, meaning there are greater chances of them accepting your broker’s call and considering your interest in their place.
7. They’re Expert Negotiators
Landlords can be vicious when negotiating the terms of your offer, quoting whatever terms or rates they deem fit. Meanwhile, you’re most likely clueless about the standard market conditions unless you’ve conducted thorough research beforehand. There are many things to negotiate, such as compliance fees, exclusivity use, renewal options, and much more. Working out a fair deal can be challenging if you don’t have prior real estate experience.
You probably aren’t your tenant rep’s first client and certainly won’t be last. They’ve dedicated their careers to understanding commercial real estate and have carried out numerous negotiations in the past. A tenant rep will add value to your experience by helping your business attain the most appropriate lease terms without worrying about whether the proceedings are being conducted properly.
This is why hiring a tenant rep broker is recommended because they can save you considerable hassle and money. They’re well-versed with which economic and non-economic factors are running the market and can walk you through the entire negotiation process. The best part is that you don’t need to pay them an out-of-pocket fee, meaning you have nothing to lose and a lot to gain from letting them negotiate your deal terms.
8. More Time for Your Business
With a tenant representation broker taking care of the real estate dealings, you can spend more time on your business goals. Whether it’s customer relations or managing supply chains, you should focus on handling these affairs as an entrepreneur. Even large corporations collaborate with tenant rep brokers because of their real estate market expertise. Finding a suitable location for yourself can take hours every day, and the search can hold you back for several months. Let a tenant rep take this burden off your shoulders.
Consider a tenant rep to be your personal assistant, working to secure the ideal office space for your company without interfering with business operations. From financial analysis and final lease summary to needs assessments, they will look after everything and allow you to be as hands-on or off as convenient. Time is money, especially in the competitive corporate sector.
Endnote on a Tenant Representation Broker
Real estate is a complex industry, even more so when dealing with the commercial side. You’ll need to know many legal details, market catches, and industry-specific terms. Unless you’ve been conducting matters in this industry for several years, you’ll find yourself at one crossroad or the other. If your business is a priority, it’s in your best interest to hire a tenant representation broker to help you settle on a space with the best lease terms and meets your requirements. Don’t hesitate to contact tenant representation services and let them take the reins on your commercial property search. There are many options to choose from, so make sure to do your research.