The landlord rep is the listing or leasing agent. They represent the best interests of the landlord or building owner and market the owner’s commercial real estate buildings (office, retail, or warehouse space) for lease, rent, or sale. Leasing agent’s negotiate on behalf of the landlord and their responsibility is to get the highest rent possible with the least amount of risk and expense on every lease transaction. They have a lot of market and transaction experience and are counting on the fact that you lack commercial real estate knowledge.
A Tenant Representative or Tenant Rep represents the best interests of tenants (business owners and companies) when leasing commercial real estate space. They help identify the best spaces and negotiate against the landlord representative or landlord to ensure you get the best deal possible. The service they provide does not cost anything out of your pocket as they split the commission that is already being paid to the listing agent. Whether you use a tenant representative or not 100% of the commission will be paid to the leasing agent so it makes sense to put some of that commission to use on your behalf. If you are not familiar with the market, typical commercial real estate clauses, or even know what a good deal looks like it’s in your best interest to hire a Tenant Rep.
Potential Conflict of Interests
Some Austin commercial realtors exclusively represent landlords, some exclusively represent tenants, and some do both. Just make sure you know where their loyalties lie. If you end up working with a tenant representative that works for the same company that is listing the commercial property for lease there maybe a conflict of interest. You don’t want them only showing you properties that are owned by the landlord that their company represents.
Make Sure You Have a Commercial Real Estate Pro in Your Corner
If you are looking to rent commercial office space or warehouse space then you should consider having a professional on your side that is knowledgeable about the market and has a lot of transaction experience. By having someone experienced in your corner you will have a better chance at getting the lowest lease or purchase rates and best terms possible. Whether you are leasing office space for the first time or renegotiating your warehouse lease renewal the Tenant Reps goal is to work on your behalf to get you the best deal.
If you have any questions about tenant representation don’t hesitate to give us a buzz at 512-861-0525 or check out our Austin commercial real estate website.