Why Hire A Tenant Representative Broker
Expertise and Market Knowledge
Tenant representatives are well-versed in all aspects of the commercial real estate market, including rental rates, conditions, and market trends. Because of their experience, they can offer insightful advice that helps businesses make informed decisions. Would you go buy a house without a basic understanding of the market?
Strategic Planning
Tenant representatives can assist in aligning your space needs with your business goals, whether it’s for expansion, downsizing, or relocation. Their strategic advice can help you make informed decisions about the best location and type of space for your business. If your business is growing, you might need more space or a different type of space to accommodate additional employees, equipment, or operations. A broker can assess how different layouts and configurations impact your operations. For example, if you need a layout that maximizes workflow efficiency or supports specific operational processes, they can help find spaces that meet those requirements.
Negotiation Skills
Tenant representatives excel in negotiation, advocating for the most favorable lease terms and conditions. By securing advantageous rental rates, terms, and tenant improvements, they can save the company a substantial amount of money over the course of the lease.
Time Savings
Finding a suitable location for a business and going over the terms of the lease can be a time-consuming process. By entrusting these tasks to tenant representatives, business owners are free to focus on their company. Your time is money, which is why you would typically hire someone to find you a home and handle the negotiations. Tenant representatives operate similarly, managing everything from locating properties to overseeing negotiations.
Access to Listings
Tenant representatives possess extensive property listings, including exclusive off-market options not publicly available. In commercial real estate, we use a data platform that is only available to commercial real estate companies. This platform has all our For Sale and For Lease listings that rarely are posted elsewhere on the internet. This increased access significantly improves the chances of finding an ideal location for the business. Many times brokers also know about listings coming to market before they are publicly marketed.
Conflict of Interest Avoidance
Unlike listing brokers, who represent the landlord, tenant representatives’ job solely is to advocate for their clients. This dedicated representation ensures that the tenant’s needs and objectives are always prioritized.
Professional Network
Tenant representatives have access to a network of business associates, including lawyers, builders, and architects, who can assist with various aspects of the leasing process. This network can be invaluable for resolving any issues that arise during the transaction.
Lease Analysis Comparison
Tenant representatives can evaluate and compare lease offers, helping companies understand the financial implications of each option. They can offer comprehensive financial models that illustrate the long-term cost and benefits of various properties. They can also provide a comprehensive analysis of various locations, including demographics, traffic patterns, and local amenities, to ensure that the site you choose supports your business objectives.
Market Data and Benchmarketing
Tenant representatives have access to extensive market data and benchmarking tools, helping businesses understand how their lease terms compare to the market. This data-driven strategy can lead to more competitive lease agreements. Like buying a home, every building and space is unique to its specific territory. Rents and lease terms vary based on market conditions and can vary drastically even based on what neighborhood the building is located in. You might be able to afford $5,000 a month and find a space that meets that budget but undenounced to you, that might be the highest rent in that area. Commercial real estate deals are not posted online for the public to access, therefore, many tenants seeking space without the help of a broker end up overpaying. A tenant representative knows the benchmark and can advise whether a deal is above, below, or in line with market terms. Using that information, they can find you the most valuable deal.
Post-lease Support
Even after the lease is signed, many tenant representatives continue to assist their clients. They can help with relocations, expansions, and lease renewals to make sure the company always has enough space as it develops and grows. You can think of your tenant representative like your second line of defense for all issues regarding your landlord or lease. If a dispute arises that you cannot come to an
agreement on or aren’t receiving the remedies you feel are necessary from the landlord, your tenant representative will step in to help resolve the issue. An example of this could be you feel that you are overpaying on operating expenses. Your landlord is typically required to report the expenses to you every year to ensure you are paying your pro rata share. Tenant representatives can perform an operating expense audit for you. If they find a discrepancy, they will advocate on your behalf. This is just one example of how your tenant representative has your back.
Cost Savings
Hiring a tenant representative typically incurs no direct cost for the tenant, as the landlord usually covers these fees. Additionally, tenant representatives can secure significant cost savings through improved lease terms and lower rental prices. Landlords already anticipate paying our fee as part of their costs on a new deal. Using a tenant representative doesn’t marginally impact the price you pay. Studies have suggested that companies that do not use tenant representatives might pay up to 10-20% more in rent compared to those who do.
Contact Us
If you need a tenant representative or would like to learn more, please reach out to ch@naihallmark.com
