What to Know.
Before facing the process of buying or leasing office space, business owners should be familiar with Tenant Representation and how it can benefit their operation.
In commercial real estate, a Tenant Rep broker is the equivalent to a buyer’s agent – representing businesses and tenants in their search and negotiation of a space for their operation.
Does a Tenant Rep Broker Cost Money?
Businesses often shy away from retaining representation in the lease negotiating process due to the fear of cost. But most are unaware that using a Tenant Rep could cost them nothing. Tenant Rep brokers are paid their commission from the Landlord (similar to a residential buyer’s agent). This fee is paid upon execution, is split with the Landlord’s agent, and is already built into the transaction. This allows the tenant to obtain representation without a cost to themselves.
A good Tenant Representative will take the reins in a lease, sale, renewal, or relocation and keep the client’s best interests as a top priority. Other agents who are representing the Landlord will have a conflict of interest. They will often promote or prioritize only specific buildings and spaces. A Tenant Representative will take a comprehensive approach to the operational needs and survey the entire market.
Assess the Needs. A thorough review of budget and operational needs will help a tenant rep broker provide detailed insight to the client and accurately begin the search/negotiation for space.
Lay Out the Options. Whether facing a lease renewal, expansion, or relocation, a Tenant Rep should always go to the market and provide comps and options within the client’s requirements.
Advocate & Negotiate. A Tenant Rep’s job, by definition, is to represent and advocate for tenants. So while business owners are occupied managing their operation, a tenant rep broker will stand in and manage all negotiations on a client’s behalf.
Process to Close. Acting as a stand-in for the client, a Tenant Rep will manage every step of the process. This includes acting as a go-between for the Landlord/Client relationship, and taking the property through close into possession.