Guest blog by David Lawrence. David is Head of Marketing at GrowthHouse by Follow Up Boss. Dave spends his days ‘under the hood’ of some of the top real estate teams in the world, helping them achieve their outlier sales results through a focus on simplifying their processes and tools.
As tempting as it may seem, finding office space by yourself is not a good idea.
In any commercial real estate transaction, there's usually a lot on the line—and making the wrong decision could result in a million-dollar loss.
But the legwork required to make the right decision basically amounts to a full-time job. And let's be honest, you already have your hands full.
That's where a tenant representative broker can help. They're your go-to expert to help you get the most out of your next lease with the least amount of hassle.
Here are three key benefits of hiring a tenant representative broker.
1. Close better deals
On average, the feasibility period (a.k.a. due diligence period) for commercial leases varies from 30-45 days. During this period there's going to be plenty of what's, why's, and how's coming from all types of stakeholders and decision makers within your business.
A tenant representative broker can ease the tension by providing smart, quick answers and breaking down complex terminology into language that's easy to digest.
Here are two ways to leverage the expertise of a tenant rep:
Better decision making
When you find a space you love, the next challenge is deciding if it's a fair deal (especially if you don't have the relevant experience). A tenant representative broker can analyze both the economic and non-economic aspects of the transaction to help you make better decisions.
Tenant reps have the connects
As with residential real estate, you shouldn't rely solely on the listing sites to narrow down your search. Tenant reps have established relationships with landlords (and their reps) and can get you an all-access pass to highly sought-out commercial properties hidden from the public eye.
What’s more, they can provide referrals to the best space planners, interior designers, and real estate attorneys without you having to spend time searching and interviewing them yourself.
2. Get the most out of your lease
Commercial lease negotiation is a complex process that involves a lot more than just price talk—and without the specific technical know-how, you could easily find yourself in an overwhelming spot.
Think about it, a landlord can quote you any rate or terms, and you’ll have no idea if these are standard for the market.
Yet again, this is where a tenant representative broker comes in handy and can help you save a ton of time and resources to secure your dream office space, without breaking the bank.
Here's how a tenant rep can help you win your negotiations:
Expert due diligence
Tenant reps know the ins and outs of commercial leases and can spot any shady terms buried in fine print. They'll help you make sense of complex jargon and give you a clear idea of what you’re getting into.
Negotiate better terms
Tenant representative brokers have the expertise to negotiate the technical aspects of a commercial lease like renewal terms, code compliance, parking, etc.—all things that are essential to helping you avoid hiccups in the future.
3. Safeguard your best interests
The goal of a landlord rep is close you on the property they represent (regardless of whether it’s good or bad for you).
On the other hand, a tenant representative broker works for you and has one goal—to advocate for your best interests.
Here's how a tenant representative broker can help keep your goals front-and-center:
Fine-tune your needs
A tenant rep knows exactly what questions to ask (think: lease space, culture fit, etc.) and will help you determine the right space for your company.
In fact, after speaking with a tenant rep, you’ll find that you have a more refined vision for your next office or building.
You’ll know the whole truth
Unlike a landlord rep, a tenant rep isn’t tied down to a single property. Part of their job is to survey an area for alternatives and compare them to find the best one relative to the others. This will give you a clear idea of whether your offer is indeed the best fit for your company.
No out-of-pocket fee
Working with landlord representatives usually costs a sizable service fee. However, working with a tenant rep broker is free, as their commission gets paid by the landlord. Given the value they add, this alone makes it a no brainer to hire them.
Stay focused on your business
Securing the right commercial space is complicated. But with a tenant rep at your side, you can make the process simple and hassle-free.
Because at the end of the day, the main reason to hire a tenant representative broker is to free up resources that can be focused on what matters most—your business.
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