What is Tenant Representation?
A tenant representative or tenant rep for short, is a commercial real estate expert who works exclusively for the tenant. This is different from standard real estate brokers, who represent both landlords and tenants (and thus have an inherent conflict of interest).
Before you go ahead and appoint a tenant rep, it’s necessary to have a basic understanding of what one does. An essential function of a tenant rep is to analyze your location and assess whether you should stay or leave. You may continue to stay put or weigh your options to ascertain if your business is ready to move to another location.
Both options need to be considered and assessed financially and logistically, for an informed decision to be made.
Why Hire a Tenant Rep?
A tenant rep broker solely has the corporate tenants’ best interest in mind throughout any commercial real estate project they do. They will provide market knowledge, help tenants’ avoid mistakes, assist with negotiations and much more.
When you want to hire a tenant representative, opt for a firm and broker that represent tenants only, and has a perfect understanding of the industry. Somebody you feel you’re comfortable with and you can trust. A tenant rep will be available even after signing the lease in case you have any questions or issues.
You can consider the tenant rep as another arm of your internal staff. If your company requires help much later, the existing relationship will prove wise, whether you’re expanding or downsizing.
Here are a some examples of the challenges of trying to source a new property without the help of a tenant representation broker:
1) Getting Landlords to Return Calls
If you have taken up the task to find office space on your own, you’ll understand how hard it can be for a landlord or landlord broker to return your calls.
Landlords are always very busy and do not have time to return every call they receive. A landlord may also hire their own landlord broker, who is probably used to working with other brokers than with individuals.
When you hire an experienced tenant rep it solves this problem in several ways:
- A tenant rep has the reputation of the company they work for, which gives them more authority when they call landlords.
- The leasing broker has probably had a relationship with the tenant rep before now –they may even have another deal in the pipeline– and therefore, there’s a high chance to return their call. These business relationships are essential, which makes it possible for the landlord to consider an offer on their space.
2) Certain Properties Do Not Go on Listing
When searching through listing sites, it can be challenging to have an idea of what’s available on your own.
While you spend time clicking through some listing sites, searching for a suitable space can be an excellent option to get a feel for the market. However, many brokerage firms fail to update their listings on some of these sites, making it impossible to succeed with your search.
A tenant rep has so many resources to solve these problems and find the best inclusive list of location options present on the market.
- Complete Listings: Tenant rep brokers can access the most comprehensive listing databases.
- Industry Relationships: Tenant representatives initiate quality relationships with both landlords and leasing brokers, allowing them to get updated information on what’s available.
- Off-Market Options: Using their industry connections, tenant rep brokers get access to information on spaces that may not be on the market yet.
Not only do tenant reps have the resources to find you all the options available, they will also take the time to cull through the list and present to you the options that best suit your needs.
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