If you’re considering working with a Tenant Representation broker, we know that you’re the type of person who can’t afford to waste time. So, without further ado, let’s jump right into the reasons why hiring a Tenant Representative will make your life easier (and save your company a boatload in the process).  

While the list below is by no means exhaustive, it captures the immense value of engaging a Tenant Representative in your search for space. As you begin working with your Tenant Rep, you will most likely discover that they can also help you with other, sometimes unlikely tasks and decisions. Read on to learn the Top 5 reasons you should engage a Tenant Rep.

1. Finding the Perfect Location 

The first reason to work with a True Tenant Rep broker is to get help with finding the perfect space for your business. A seasoned broker will start by analyzing your company’s real estate needs and wants in order to ensure the space you will be looking for, is in fact the ideal option.  

Sometimes clients end up adjusting their space requirements after consulting with a Tenant Representative. There is a lot more to consider besides the physical address of a property when choosing the perfect location. Traffic flows, neighborhood boundaries, and proximity to the intestate road system are examples of the subtle differences a Tenant Rep broker will analyze while working on pinpointing the ideal location for your company. 

The Tenant Representative will also ensure that you won’t overlook other requirements such as signage availability, proper parking, and nearby amenities.

Furthermore, your Tenant Rep will be able to show you unadvertised properties that weren’t even on your radar and there is a pretty good chance that one of these “secret” locations turns out to be the winner.

If you’re looking for new office space, renewing, renegotiating, or anything in between,  there are many factors you must keep in mind. Learn the system used by True Tenant Reps™ at  iOptimize Realty,^® developed with over 30+ years of market intelligence that will save you time and money on your next office space. Sign up for the free video course below. 

2. Negotiating the Best Possible Lease 

A Tenant Rep can add a lot of negotiating power to your side of the table. They have the skills to = = = =negotiate with property owners and are usually able to secure the most favorable rental rate and other lease terms. They may also already be familiar with the landlord from past deals and know the best way to discuss deals with them. For example, a Tenant Rep may have the knowledge that a certain landlord may be willing to offer free concessions, or that another one is accepting shorter term deals in order to secure occupants. 

Some of the most negotiated items in commercial real estate leasing are: 

• Lease rate
• Lease term
• Tenant Improvement Allowance
• “Free rent”/ Rent abatement period
• Annual rent increase
• Renewal options
• Common area maintenance
• Operating expenses
• Key dates (start date, renewal date, cancellation options, rights of refusals, etc.)

It is worth noting that the majority of the provisions in lease agreements are negotiable, so a Tenant Rep is especially important. Be sure to work with a broker who knows the ins and outs of lease agreements, and will be able to negotiate conflict-free almost any clause as per the client’s requirements. This means that they or their organization do not take on landlord assignments. Unfortunately these landlord brokers in disguise dominate the Tenant Representation field. Learn how to spot one here: What is a True Tenant Rep and What to Avoid.

Some companies prefer to have their in-house corporate attorneys lead the lease negotiations assuming that their legal expertise would be sufficient to sign a great lease. Corporate attorneys however are not always experts in commercial real estate and are most likely unfamiliar with the industry’s specifics when it comes to lease negotiations. They are often not up-to-speed for most current market conditions. The best situation is when your Tenant Rep works hand-in-glove with your experienced commercial real estate attorney. 

3. Save You Time and Money 

This is one of the most important benefits for a lot of busy corporate executives heading the real estate space hunt at their organization.

There is a lot of grunt work involved in handling your commercial real estate, and without a Tenant Rep broker, every phone call, property tour, internet search, and document review will need to be handled by you or someone on your in-house staff. All these tasks can add up to hundreds of work hours that would be better spent running your business. A Tenant Representative will not only take this workload off your shoulders, saving you an invaluable amount of time in the process, but will also most likely deliver better results because of his or her overall industry experience and local market expertise. 

A seasoned Tenant Rep with powerful negotiating skills can also save you big when negotiating the best possible lease rate, low annual rent increases, and a generous tenant improvement allowance. These savings can add up to millions of dollars, especially if you are signing a 5- or 10-year long lease term. Read about whether you should renegotiate your lease: Should I Renegotiate the Terms of my Lease? 

Offloading the space search and negotiation process to a broker will not only make your quarterly financial projections look great, but will also shield you from the stress and headache of having to carry out this monumental task on your own or to rely on your in-house staff. 

4. Tenant Rep Services Don’t Cost the Tenant 

One of the biggest misconceptions about Tenant Representation is that there is a cost associated with using the service. And rightfully so. After all, no one works for free and Tenant Reps are no exception. 

The good news however is that the prospective tenant, or in other words the entity that hires the Tenant Rep broker and is bound to benefit most from the service. Yes, you read that right!

The Tenant Rep will save your company significant sums of money and will typically come at no cost for you. 

What most tenants don’t realize is that built into the cost of the building are the marketing fees for the landlord’s broker and any Tenant Rep that a corporate client chooses to use. So, if the corporate client does not avail themselves of their own representation, then the landlord will just pocket this money. 

5. Better Decision Making for the Future 

There’s a lot of questions looming over corporate tenants: Should we renew our lease or look at other locations? Does it make sense to expand now? Should we just ditch our offices all together?

These are important questions that can have a long-term impact (positive or negative) on the bottom line of your organization, yet they are hard to answer without a comprehensive view of the market.

Luckily, the True Tenant Reps™ at iOptimize Realty^® keep up with the latest industry trends and the current market conditions and therefore are able to provide holistic advice. This means that whether you need assistance with a singular lease or entire portfolio, a True Tenant Rep™ can optimize the transaction. You’re ensured that your future is planned for accordingly, safely plotted for maximum success. 

Talk to a True Tenant Rep™ at iOptimize Realty^® to learn how you can plan for your CRE future today. 

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