If you're new to the world of commercial real estate, the thought of moving your office or warehouse facility can be overwhelming and expensive. This isn't only a space you're going to occupy for years to come; it's also likely one of the top 3 expenses for your business behind payroll. Hiring a tenant rep broker is one of the best things you can do before you start your search for a new office or warehouse space. Without an experienced tenant representative working on your behalf, you put yourself (and your business) at risk of being taken advantage of.
What is a tenant rep broker?
A tenant representative, or ‘tenant rep’ for short, is a commercial real estate broker that works exclusively for you, the tenant. A tenant rep differs from a transaction real estate broker, who works with both tenants and landlords simultaneously (and can thus have conflicts of interest).
Why work with a tenant representative?
There are many benefits of working with a tenant representative for your next commercial real estate transaction. Here are three of the top reasons it's worth hiring a tenant rep.
1. Landlords will actually return calls
If you've already started your DIY search for your new office or warehouse space, you know how difficult it is to get a landlord or landlord rep to return your call. The fact of the matter is that landlords or landlord reps are exceptionally busy people and they don't always have time to return every call (even though you might be the perfect fit for the space!)
Working with a tenant rep can help solve this problem because they have increased credibility, backing, and reputation of their real estate company and often have business relationships with those landlord reps from working on past deals. Hiring a tenant rep also shows how serious you are about the space. Your business is somewhat ‘pre-qualified’ and demonstrating your willingness to relocate your business; not just kicking tires.
2. Access to more properties
Not all commercial real estate listing services are available to the public. And many that are listed on free sites like LoopNet aren't often up-to-date. Working with a tenant rep broker ensures you can access to complete listing databases, like Costar, that requires a significant monthly fee. Tenant reps should also be well connected within the CRE industry. They likely have relationships with both landlords and leasing brokers, which can help give them access to off-market options. Relationships with quality architects, commercial general contractors, interior designers, office furniture dealers, etc. can also benefit the tenant.
3. Finding you the perfect space
Finding the right office space isn't easy. You can't just think about what you need now; you need to plan for the future too. Is your company growing, static or downsizing? What are typical landlord concessions currently (e.g. free rent; abated parking costs; base year cap; annual rental rate increases; moving allowance; tenant improvement allowance)? What kind of parking do you need for your employees? Are the rental rates within your budget? Are there specific amenities you want? Is the landlord professional and responsive?
These are all things your tenant rep will take into consideration and use to find you the perfect space. And once it's found, they'll also negotiate your lease to ensure you're getting the best possible deal. This can save you a significant amount of money, time, energy & frustration…and the landlord pays the tenant rep’s real estate commission, so you’ll never come out of pocket to compensate your tenant rep!
Reach out to an experienced tenant rep broker
There's no sugar-coating it. Commercial real estate is complicated. Working with an experienced tenant rep broker is key to a successful transaction. Contact Fountainhead Commercial today to talk to an experienced tenant rep broker who can successfully advocate on your company’s behalf.
