Tenant Representation For Commercial Space Leasing
Tenant Representation is when a commercial real estate expert exclusively represents tenants, never landlords in the search, selection, and negotiation of commercial properties.
Austin Tenant Advisors only focus is Tenant Representation. We ONLY represent the needs & best interests of the tenant.
We help new and existing business owners and companies find commercial space for rent and negotiate the most concessions and lowest lease rates possible.
Landlord agents have a fiduciary duty to represent the best interests of building owners. Of course they will be nice and professional with you however at the end of they day their job is to help the landlords negotiate the fewest concessions and the highest lease rates possible.
Renting business real estate space can be a complicated process so it’s important that you have the experience, tools, and market knowledge when dealing with landlords. If you don’t then consider hiring a tenant representation broker.
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Who Needs a Tenant Rep?
Companies that lack the time and resources to secure business real estate space on their own, or cannot go through a proper lease process to ensure that they are given the best deal possible.
Startups that need to rent space for their business and are leasing space for the first time.
Existing companies that want to expand or renew their current lease
Companies who would like assistance with negotiations on their commercial lease renewal.
Benefits of Having a Tenant Representation
- Tenant reps show you every property that meets your needs, they are not biased to only those in their portfolio like landlord reps.
- You will have your very own team of tenant rep real estate experts; from site selection, to lease negotiations, to occupancy.
- You will have access to the same real estate market intelligence as landlords.
- You will enjoy a reduction in time and expenses which will help you boost profits.
- Tenant representation is a free service to you as landlords pay our fee.
- Your liabilities and risks will be mitigated allowing you to spend your energy on your own business.
- Tenant reps connect you with architects, attorneys, and furniture vendors, consult on ideal office space layouts, and help get construction bids.
- You will have an expert negotiator at your side that understands how to create as much leverage as possible in competitive markets.
- You will know what is available and when even before the space hits the market.
Ensure Success In Working With Tenant Representation Brokers
A good tenant representation broker will ask you all the right questions however just in case below are some things that would be important to discuss with them. Before you get started you may want to have them give you a tenant representation agreement.
- Current and future headcount (ideally 3-5 years)
- Ideal layout (e.g. # of offices, conference rooms, break areas, etc.)
- Job functions within the company (e.g. who needs private offices vs open office)
- Your current financial situation (are you a start up or an existing company with track record)
Tenant Representation Process
1. The first step in the process is for us to meet and discuss you current and future commercial real estate needs. For example:
- your current and future head count,
- ideal layout (open or lots of hard-walled offices),
- ideal location
- maximum monthly rent budget
- Plans for growth
2. Our tenant representation brokers will search only those commercial listings that meet your ideal size, location, budget, etc. We pay for access to the best commercial listing databases and have relationships will all of the landlord agents in town. We will know what is available and when, even before a commercial space hits the market.
3. Once we have identified all of the spaces that will work we meet with you to review and narrow down the options and select the ones that we will tour together
4. Tenant reps set up tours of all the best spaces and walk each space with you highlighting the pros and cons of each
5. Next we draft and send RFPs to our top 2-3 options. In tight markets we may only have 1. Ideally we want at least 2-3 to create leverage and negotiating power with the landlords.
6. Once we receive the responses to our RFPs we will most likely need to determine the cost of tenant improvements (if needed). Most landlords respond to RFPs with some sort of TI allowance so to negotiate intelligently we need to know the cost to build out. Then we can do an apples apples cost comparison of each space.
7. After a bit of back and forth negotiating with the landlords we end up with the best and final offer from each. Now we must make a decision based on monetary and non monetary concessions.
8. After the basic terms and conditions are agreed to on the proposal we now request to have the landlord draft the lease for us to review and comment on.
9. Together your tenant representation broker and attorney will review the lease and negotiate lease terms until a final document is agreed upon that you can sign.
10. Once the lease is executed now we are able to begin the tenant improvement process (meeting with architect to finalize a plan and pricing notes that can be used to get hard construction bids.
There really is no benefit to searching for commercial real estate space on your own. Only the landlords benefit by charging more rent and giving fewer concessions. Tenant representation services do not cost you anything and by using a tenant rep you will save a ton of time, mitigate your risks, and get the best deal possible. Our tenant reps are the best in central Texas and know the Austin tx commercial real estate market well. Whether you are renting office space, warehouse space, or retail space we got you covered.