What is Tenant Representation? Do you really need a broker?

tenant representation

Do you need to lease commercial space for your business, practice or startup company? All things considered, commercial tenant representation may be one of the best decisions you will make. Hiring a broker to represent you in a commercial real estate transaction provides many benefits. Benefits such as, more insight, knowledge and experience dealing with matters of real estate law. A broker also has experience negotiating deals. Using a professional will save you valuable time. Finally, a broker serves as an in-between for you with the landlord of your future commercial space.

Lets breakdown most of the things covered in tenant representation otherwise known as tenant rep.

Versatility of a Broker

There are tenant rep brokers in every asset class. Asset classes are the types of commercial spaces you can lease. These asset classes are office, industrial, retail and warehouse. There are some subsets of these asset classes ; e.g. medical is apart of the office asset class. These are aspects a commercial tenant rep broker can clarify for you.

Space Selection Assistance

commercial tenant broker’s has access to resources the public doesn’t have. These resources allow a tenant broker to view spaces or buildings that may meet your requirements. Spaces you would haven’t known about, without a broker’s resources. Resources such as costar, loopnet and crexi. Most importantly, a commercial real estate tenant broker should have relationships with landlords and fellow brokers he/she. Leveraging these relationships, a good broker will discovery off-market spaces or properties for lease. An off-market property is a property or space available for sale or lease that has not been listed publicly yet.

Space Viewing/Showing

Another benefit to using a commercial tenant representation broker, is physical viewing. Although I’m sure you are quite capable determine a space’s suitability. A broker sees as much as fifty space weekly. As a result, he or she can pinpoint issues in the layout, physical defects as well as area defects. These aspects could affect as much as 50% of the negotiating power in a deal.

Negotiating Through Tenant Representation

Nothing in this article was written to diminish your talents or abilities. However you must realize, tenant rep brokers negotiate real estate deals daily. There is also professional curtesy extended to a tenant representation broker. Curtesy can go a long way in negotiations. A commercial real estate broker can help you determine negotiating points. Finally, a tenant representation broker can make and counter offers for you.

Tenant Rep Brokers Have Service Professionals to Help

Post deal acceptance, a broker can provide you with lawyers they know and trust to review a lease. Additionally, brokers should know and trust inspectors, contractors, fire suppression professionals, etc. These people can be invaluable by the time you’re ready for build out. Lastly, a broker should have long term maintenance contractors they know and trust. For example: HVAC, plumbers, janitorial and IT professionals. These contractors will make life easy and convenient for years to come.

If you have decided to lease commercial space and would like to speak to a commercial tenant representation broker contact us.