The benefits of working with a Tenant Representative – by Shelly Branscom
NAI SunVista News | Office
There is a lot to consider when buyer or leasing commercial property and the cost of a Tenant Representative can be somewhat confusing.
What does it cost to work with a Tenant Rep? Well, when you work with a Tenant Representative, you do not incur extra costs. Rather, the Landlord pays the fee for the Tenant Representative’s work. In fact, they are generally happy to do so because they benefit from their vacant spaces being leased. When you work with a Tenant Rep, you get their expert market knowledge, research, negotiations skills and due diligence at no additional cost to you.
How is commission paid in a lease transaction? Commission is typically a small percentage of the total gross rent over the term of the lease.
If Tenant Reps negotiate a better deal, aren’t’ they also cutting their own commission? Although it is true that negotiating a more cost-effective deal for tenants would be cutting the representative’s own commission, a good Tenant Rep is not looking for a one-off transaction. Instead, they are seeking valuable, long-term relationships with their clients. When the client appreciates the accomplishments of their Tenant Rep, they are more likely to fortify a relationship by inviting them to work their commercial real estate portfolio. This creates a strategic business relationship between client and Tenant Representative allowing the Tenant Rep to work with their client’s best interests in mind.
How does a Tenant Rep save you money in commercial real estate? The market knowledge a Tenant Rep brings to a transaction enables them to work on your behalf to find properties, negotiate better terms, and uncover hidden fees while looking at the entire transactional picture. For example, many tenants only consider the base rent, however there are other factors that contribute to the total cost of occupancy including rate escalations, build out costs and operating expenses. By employing their market knowledge, your Tenant Representative can save you big bucks.
In conclusion, Tenant Reps are analyzing market trends and deals every day. When your lease is getting ready to lapse, reach out to me. As your Tenant Rep, I can work to your benefit providing you long term savings, market knowledge and skilled negotiations that will save you time and energy you could otherwise be putting into your business.
Shelly Branscom, CCIM is an NAI SunVista commercial real estate specialist who provides substantial long-term strategies and business planning services to her clients. She prides herself on thinking outside the box, enabling her to contribute unique solutions and outcomes specific to each of her clients. Learn more about Shelly and her listings.
NAI SunVista is a full-service commercial real estate company serving New Mexico since 1996. The company is a dynamic commercial real estate firm offering best-in-class real estate services in brokerage, property management, asset management, business brokerage and development services.