Finding and leasing office space can be an arduous task. The time needed to learn the process, sift through hundreds of available options to find the perfect space, and negotiate the best terms (if you know how and know the market) can take you away from what you actually get paid to do, run your business. Don’t be tempted to handle this on your own; instead, make your life easier and use a commercial real estate broker that specializes in representing tenants in office space leases.
Most people think that they will get a lower lease rate on their office lease transaction by not using a commercial office tenant representative. Not true. The fact is that using a tenant representative does not have a negative effect on the deal you get. A full 6% commission is going to be paid by the landlord whether or not you have help. This has already been agreed to by the listing agent and landlord. If you have representation, the landlord pays a 6% commission. If you represent yourself, the landlord is still paying a 6% commission. Save yourself the time and effort; here are 3 good reasons why you should hire a tenant representative when searching for and leasing office space.
Save You Time
How much is your time worth? A good tenant broker does all the legwork for you: researching and identifying only those properties that meet your needs. This means you don’t have to waste your time looking at and calling on properties only to find out that they are too big, too small, or too expensive. You tell them your wants, needs, and desires, and they do all the work providing you pictures, floor plans, and rate info on only those options that meet your specific criteria.
How many lease transactions have you done…..maybe 1 every 3-5 years? An experienced broker does 20 to 30 lease transactions each year. Imagine the market knowledge and know how you gain after negotiating over 200 lease transactions. If you negotiated your own deal how do you really know that you have a good deal? What are you comparing your deal to…current rates quoted by landlords? Brokers have real live comparables (after being negotiated) and can honestly say whether or not your deal is good. Would that give you peace of mind?
Lease Contract Negotiations
To ensure you get the best lease rate and terms there are many processes to follow; one of those being understanding and negotiating the lease contract. Good brokers and lawyers can interpret the lease contract in a way that you understand your risks. Did you know the landlord can relocate you? What if your company is acquired…….did you remember to negotiate the right to assign the lease? What if your company grows…….did you remember to ask for expansion options? These are just a few things. There are many others that must be considered.
Don’t succumb to the lure of getting a lower lease rate by not using a tenant representative to help you find office space and negotiate your lease. Level the playing field as you prepare to search for space.