Running your company is your primary role and what you know best. What about leasing or buying commercial real estate? It is probably something you do only a handful of times in your business career. Landlords and property listing agents, on the other hand, do it day in and day out. Do they have an unfair advantage? You bet they do. So, how do you level the playing field? You engage the services of a qualified tenant representative (a.k.a. tenant adviser, tenant rep or buyer’s agent). These are commercial real estate agents who specialize in representing tenants and buyers, not landlords or sellers. They provide objective, conflict-free advice, minimize your cost of occupancy, and mitigate risk associated with your real estate decisions. A tenant adviser who is involved with the leasing marketplace on a daily basis knows not only what is available, but also what landlords are willing to do in terms of rental rates, tenant improvements, concessions, and a host of other factors. Advisers who know the details of these prior transactions have invaluable ammunition for negotiations – details that are not available by simply asking landlords what they are willing to do.
No Cost to You:
Many tenants fear that by engaging the services of a tenant representative they will end up having to pay more in rent so that the landlord can pay the tenant’s agent. Actually, the landlord’s leasing agent is typically paid a commission which is shared with the tenant’s agent upon the signing of a lease. The commission is paid by the landlord and is most often calculated as a percentage of the lease value, usually between four and six percent. Ultimately the leasing commission is included in the cost of renting the space, but it is important to remember that the commission will most likely be paid whether or not the tenant is represented. Furthermore, the savings that a seasoned tenant adviser can achieve for the tenant is almost always many times more than the amount of the commission.