Are you swamped with real estate worries, when what you really want is to focus on your business and your clients? Did you know that you can outsource the maze of leasing, renewals, CAM audits, and all of the other real estate needs of your company?
If you lease space, you probably only negotiate a lease agreement a handful of times. On the other hand, landlords and their agents are experts and do this every day. When it comes to dealing with you, the tenant, they have a definite advantage. How do you level the playing field? The savvy tenant will engage the services of their own qualified broker.
Your commitment to real estate is one of your most expensive line items and has a direct impact your company's bottom line. You need an expert to look out for your best interest. That's where a strong tenant representative comes in.
With a good tenant rep, you can outsource your real estate department! Here's how they can help.
o Allow you to keep focused on your primary business and do what you do best.
o Help cut your occupancy costs. Good tenant reps have negotiated hundreds if not thousands of leases and will guide you through the process helping you avoid costly mistakes.
o Limit your financial exposure and avoid any "budget busters" that might come down the road (i.e. paying for a new roof, parking lot and other capital improvements).
o Negotiate from a position of strength. Tenant reps have the market knowledge and experience that allow them to obtain the best deal for you.
o Provide a detailed financial analysis of your options and alternatives.
o Make sure you're not paying for space you don't have. It's amazing how landlords measure space.
o They'll be by your side for continued lease administration support, such as expansion, questions on lease terms and conditions (It's free to call them as opposed to your attorney!) After a lease is signed, most brokers cash their commission check and disappear until it's time for a renewal.
o Provide an annual CAM reimbursement review
By using the services of a tenant representative, you have a chance to retain a market specialist that provides unbiased, professional representation and expertise at no direct cost to you. Let me tell you how that works.
Leasing fees are a line item on a landlord's budget and this is always paid to someone, whether you have representation or not. If you do retain a tenant rep, the budgeted fee is split between your representative and the landlords listing agent. There are no hidden or additional fees tacked onto your lease rate and you won't save anything by not having representation. If you choose not to be represented, the landlord's agent (or the landlord himself) pockets the entire fee.
In the case of lease renewals should you also engage the services of a tenant rep? Absolutely! Without your own representation on a renewal, you are again at a big disadvantage (see "BROKERS WHO SERVE TWO MASTERS" in our last issue of ITRA Real Estate Strategies, available at [http://www.tenrea.com/archives]). With the current signs of a recession, landlords will be competing for your business, potentially causing rental rates to drop. Go into lease renewal negotiations armed with someone whose only interest is helping you achieve the best deal.
A good tenant representative will always be your advocate.
Gary founded Tenant Real Estate Advisors to provide small companies with the advantages of a professional real estate department. His 25 years of experience in real estate management and negotiating hundreds of leases, allows him to draw on this knowledge and skill to get the best results for his clients. Please visit our website at http://tenrea.com - or call us at 719.634.9000 for more information.
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