When you are looking for commercial real estate for rent (office, retail, or warehouse space) and are not familiar with the area or market conditions trying to do it on your own can be very time consuming and potentially costly. The listing agents (aka landlord representatives) will provide you a little bit of useful information however at the end of the day they represent the best interests of the landlord or building owner. Their fiduciary duty is to help the landlord get the highest rates and best terms possible.
If you really want to maximize your time and ensure that you get the best deal possible it's in your best interest to hire a specialists that has your best interests in mind. Below are a few of the top reasons why you should hire a tenant representation broker.
Top Benefits of Hiring a Tenant Representative
- Tenant Rep brokers work for you – It's their job to work on your behalf to find the best space, negotiate the best deal, and always have your best interests in mind. Landlord reps maybe nice and helpful however keep in mind at the end of the day they are looking out for the landlords best interests.
- Allow you to focus on your business – Unless you are in the commercial real estate business it's unlikely you have as many connections and resources as a commercial real estate tenant rep. They spend everyday gathering data and learning the market
- Get the best deal – They know the common market economic and non-economic deals points and will leverage that information to get you the best deal.
- You will save time – There are literally millions of sf of commercial space to choose from. A good tenant representative will listen to your needs and only present you the spaces that meet your ideal size, location, budget, etc. This will save you a ton of time that you would have wasted looking for space on your own.
- They will know of more properties for rent – Commercial spaces are listed on websites like loopnet, 42 floors, and commercial search, however the data is frequently inaccurate our outdated. Many of those sites are simply lead magnets. Your tenant rep pays to have access to all of those databases however they also know all of the landlord reps in town so they are able to easily reach out to them and confirm that what they have listed is available and when. They will typically even know of properties that will be available 12 months from now.
- You will save money – Tenant reps keep up with market trends so they know what good deals look like. They know just as much or more than the landlord reps which means you will be on a level playing field when negotiating lease rates, concessions, and terms. Having them on your side means you will avoid over paying and not get taken advantage of.
- Tenant rep brokers know how landlords think – This means the playing field is evened. They will have the same knowledge, tools, and resources as the landlord agents which will ensure that they are well equipped and your interests taken care of.
- Tenant brokers will review your lease – They are familiar with the key lease clauses and will explain them to ensure that you understand the impact of the lease clauses and that nothing is overlooked.
- Simplify the commercial lease process – Renting commercial real estate is more complicated than leasing apartments. Finding the right space and negotiating the lease can take months. A good tenant rep will simplify and guide you through the entire process.
- They know great resources – Because they are in the market day in and day out they typically know a lot of great resources such as architects, contractors, engineers, data cabling and internet vendors, etc. You won't have to spend a ton of time interviewing them as your tenant rep can typically help you in the selection process.
- You don't have to pay for tenant reps service – Tenant reps don't typically charge a fee for their services. They represent your best interests however their fee is paid for by the landlord. When a landlord and landlord agent sign an agreement a commission is agreed to up front. Your tenant rep splits that fee with the listing agent. Not only does their service not cost you anything, they won't receive any compensation until the deal is complete. Because of this you can count on them to work hard to ensure your needs are taken care of.
- Your needs are met – If the tenant rep has helped a lot of companies find commercial space they typically have a good idea of how to match needs. They can provide valuable insight into your current and future space needs, ideal office layouts for your type of business, etc. They can even uncover needs that you didn't know you had.
If you have any questions about the benefits of having a tenant rep broker help you find and negotiate commercial space feel free to contact us. Our website is located at Austin Tenant Advisors.