If your lease is up in the next 12-18 months, now is the time to take action. Whether you are contemplating relocating your business or planning on staying in your space for the next 5-10 years, a tenant rep can help. The more time you allow for consideration of various locations, the more leverage you will have with the landlord to reduce costs, gain operational efficiencies, and save time.
Many tenants don’t know
The end of your lease means a chance for a new beginning. Even if you enjoy your current space and have no intention of relocating, allow someone to represent you. A tenant representative will approach your landlord with detailed facts and figures that will translate into financial benefits to your company.
Tenant reps offer the best and most complete corporate real estate services exclusively on behalf of the tenants or users. They don’t have a stake in both sides of the transaction that might compromise your outcome. Tenant reps work exclusively under written contract with their clients. Their contract clearly spells out the services they provide and the obligations of the parties.
Tailored lease solutions
As aggressive advocates of your interests, a tenant rep’s exclusive loyalty translates into financial benefits. You’ll find someone to listen and to do their homework. They focus on understanding your company’s structure, human capital, technology, financial goals and future growth plans. Once they have a clear picture of your business, they tailor lease solutions to fit your needs. Clients appreciate a tenant representative’s clarity of communication, the logic of their real estate strategy and the ability to execute the real estate transaction without any conflict of interest.
How are tenant reps compensated?
As a tenant, you are not directly charged for a tenant representative’s services. What does that mean? In the leasing of a property, the landlord pays a fee to his listing broker. The listing broker then pays a portion of that commission to the tenant’s representative. The bottom line is that the commission is included in the total dollar value of the lease; meaning the money comes out of your future rent.
Are you getting what you paid for?
You should continue to get value for your money throughout your lease. Therefore, tenant reps generally view their commission as a fee, not only for services already provided, but also for work to be done to assist you after the transaction is completed. Tenant representatives are there for you throughout the initial planning, locating of appropriate properties, negotiating the best transactions, and reviewing leases. We are there for you throughout the tenant improvement phase and throughout the complete move-in. And because real estate is ever changing, they will consider themselves “on call” to you and are available to assist you with any future questions.
So, for your sake, please use a tenant representative. We, collectively, will only improve your commercial real estate experience, and save you both time and money!
Your tenant representative