There is no question nobody knows your business better than yourself. However, selecting space for your organization-and successfully negotiating a lease you can live with with-are complex, time-consuming tasks, filled with potential pitfalls. That’s why business tenants often turn to their brokers for advice come lease renewal time or when evaluating relocation. And that can be smart, since landlords will often avoid proposing questionable terms when they know experts will be perusing the fine print. Just the fact that you have a broker will encourage your landlord to offer a better deal.
There are typically two types of brokers: “tenant” and “landlord.” The latter represents space marketed by property owners, so there can be a conflict of interest when it comes to lease terms. It’s smarter to use a “tenant broker,” who primarily represents tenants.
Hiring a tenant representative who acts on your behalf can eliminate many of the hassles in site selection and negotiation. It can prevent potentially disastrous missteps. And it can cut much of your real estate expense. More importantly aligning yourself with an experienced Tenant Rep can turn up real economic opportunities and help turn your space into a strategic asset.
From Needs Analysis to Exit Strategy
You can expect a proactive tenant representative to:
- Analyze your space needs
- Investigate all available properties and determine which are the most appropriate for your needs and budget.
- Create a bidding war among several landlords for your business
- Protect you during lease negotiations so that you come away with terms that meet your present and potential future needs
- Serve as a buffer between you and the landlord
- Identify lease provisions that could cost or save you money during the lease term
- Handle the paperwork and other details of the lease negotiation
- Settle disputes that after during negotiations and even after the lease is signed
- Ensure you get the most value from all lease terms beyond the rental rate (i.e. tenant improvement allowances, free rent, expansion and contraction options, renewal provision, parking rights and signage)
- Safeguard you against signing onto any provisions that run against your economic interest
- Define lease terms to benefit you
- Win concessions that anticipate your actual needs
The tenant rep is a specialist in selecting space and negotiating leases. Making effective use of a real professional will generate cost savings and give you space and terms that compliment your business objectives during your entire lease.