What Do Commercial Tenant Representatives Do?
A commercial real estate tenant representative is a licensed real estate agent that only represents tenants who lease office, retail, or warehouse space. They represent your best interests and work on your behalf to find available spaces, draft proposals, negotiate leases, share with you all the info that a landlord rep will not, and ensure that you get the lowest lease rate and best terms possible.
How do Commercial Tenant Reps Get Paid?
Tenant reps get paid by the landlord as they split the commission that is already being paid to the landlords agent. Landlords typically pay their listing agent 5-6% of the lease amount. When you have tenant representation your best interests are taken care of however 9 out of 10 times you don't have to pay any fee. If you don't have a tenant rep the listing agent will be paid 100% of the commission. Since commissions are being paid out regardless you might as well put some of that $$ to good use on your behalf.
Landlord reps is an agent that represents the Landlord's best interest in marketing available spaces and negotiating against tenants to get the highest rents and lowest concessions possible. Their goal is to make the landlord as much money as possible. They are often very experienced, have a wealth of market knowledge, and have negotiated 100's of deals before. This can put you at a disadvantage if you do not have a tenant representative helping you.
If you are searching for commercial space on your own be prepared to spend a ton of time learning the market, searching the internet, and driving around looking for space. Working with a commercial tenant rep will save you a ton of time since after learning about your ideal location & size , budget, growth needs, timing, etc they will be able to quickly identify which buildings and spaces make the most sense for your business.
In addition with the experience and market knowledge they will be able to help you negotiate the best deal. Think about it…….If you were getting a divorce would you represent yourself and negotiate against an experienced attorney or would you hire someone with experience to negotiate on your behalf?
Next time you need new space or need to negotiate a renewal or expansion make your life a little easier and consider using the services of a local tenant representative.