The benefits of working with a Tenant Representative, Part II – by Shelly Branscom
Industry News | NAI SunVista News | Office
Let’s begin with understanding the difference between The Landlord’s Broker and a Tenant Representative.
The Landlord is typically sophisticated. Naturally, they have sophisticated people to represent them. Landlord brokers are well-versed in the real estate world. They will do whatever it takes to get their client, the landlord, the best deal possible. They have a fiduciary duty to obtain the highest price and best terms for the landlord. Therefore, if you are up against a landlord broker, you will want someone in your corner who knows what they are doing. Why would you want to enter into negotiations unguarded?
Do you really need a Tenant Representative? When real estate mistakes could cost your company thousands of dollars, you likely do not want that responsibility. Working with a professional who will provide the highest level of service and market knowledge will help you avoid real estate nightmares.
If you are a tenant looking to lease commercial space, you need Tenant Representation. The process of finding a property and negotiating a lease can be extremely laborious. If you try to do it on your own, you will likely leave money on the table.
The process of negotiating the language in your lease is crucial. You will want a team of experts to assist with ensuring your lease agreement contains customary and equitable verbiage. Each clause should be thoroughly analyzed for what is included and what has also been omitted. This is a time-consuming process. By working with a Tenant Representative, you can save time and retain your peace of mind knowing a professional is working on your behalf.
This is especially true for renewals. Often, tenants will assume the stakes are lower when renegotiating the extension of an existing lease. However, this is where you could be caught off guard. Do you know if lease rates have increased or decreased since you initially occupied the space? What other concessions are being given under the current market conditions?
The CCIM Institute explains it best, “When it comes to lease renewals, many in the industry wonder why tenants would hire professionals to represent their interests. The answer is straightforward: When tenants do not go to the marketplace to fully determine whether the renewal terms and conditions are competitive, they almost always lose. Knowledgeable landlords keep pace with the marketplace and fully appreciate the financial rewards to the property owner when tenants enter lease renewal negotiations without a broker and without bringing alternative locations into competitive play.”
A Tenant Representative can be critical to the success of your commercial real estate. In order to get the best possible outcome for your lease, you need to hire a Tenant Representative broker. You can rely on them to:
- Find you 3-4 times the number of suitable sites
- Let you focus on your day job
- Connect you with the professionals you need
- Help you avoid costly mistakes
- Honestly compare all suitable sites
- Thoroughly analyze lease terms
- Conduct negotiations with your landlord, far beyond just rent
Contact me when you are ready to work with a Tenant Representative.
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.