I get this question all the time and still some business decision makers choose to find and rent commercial space on their own. That is fine as long as they have the TIME, and are equipped with the same tools, experience, and resources as building owners, landlords, and their listing agents. However in most cases they are not and end up being in a huge disadvantage in lease negotiations.
- Buildings Owners, Landlords and their listing agents negotiate and manage many more leases than the average tenant.
- They have access to more market data.
- They hire experts and trusted advisors (brokers, attorneys, etc) to help them lease and negotiate against Tenants to ensure they get the highest rents and give the least concessions (tenant improvements, free rent) possible.
- They lease commercial space every day. Tenants may do so every 3-5 years.
- They have access to market comparables
- They either live in Austin or have representation in Austin. If you are from out of town you will not be familiar with the market conditions
Don’t think because you represent yourself that you will get a lower lease rate. In most cases you will not. When banks finance buildings they factor in all costs associated with leasing and managing a building, and leasing commissions is one of those. Leasing commissions are going to be paid (to the Landlord’s agent) whether or not you hire a tenant representative. If you and I were to call a building separately and ask what lease rate they were quoting they would not ask you, “Do you want the lease rate with having a tenant rep or the one without?” The lease rate would be the same.
Now by engaging a tenant representative it will level the playing field. We will be able to share our experience and expertise, our resources, negotiate on your behalf, and engage other experts (attorneys, architects, etc) as needed. We split the fee already being paid to the listing agent so there is no additional cost out of your pocket.
What do you have to lose? Call (512) 861-0525 or email us to discuss!