As much as tenants dislike the process of moving their office location, sometimes it becomes a necessity to do so. Whether it is from growth, adding partners or the need to add an office in a new market, the first thing that needs to be considered is hiring a Tenant Representation Broker.

 

A tenant representation broker is someone that solely represents the tenant or space users only of a lease or purchase of commercial real estate. In this article, I will describe some key points and advantages as to why you as a tenant or buyer should have proper representation when considering leasing or buying office space.

 

The time value of money is a basic concept used in all walks of life. That is, what is the cost of your time that you can otherwise be making money at your profession. Why should you, as a medical professional, or someone on your staff do a site search and negotiate a real estate transaction when your time is better spent doing what you do best?

 

One of the biggest misconceptions in not having a tenant representative is that there is a cost savings involved. After all, it is only common sense that the more parties involved, the more it will cost. This is, in fact, just the opposite. When dealing directly with a landlord's broker, he or she will receive the full commission. They also have a fiduciary responsibility to represent the landlord. Therefore, they will not be representing your best interest in the negotiations.

 

An experienced tenant representation broker can typically save the client up to 30 percent in the transaction, which is several times the amount of the brokerage fee paid out by the seller or landlord. Knowledge of the market, careful analysis of the deal structure, preparing offers, applying creative negotiation techniques, assisting in the due diligence process, and assisting in managing the tenant renovation process are only a few ways that these savings are incurred.

 

A qualified tenant representative broker is capable of finding every potential office space or property available in the marketplace. Not only do they have access to all the commercial multiple property listings available, but also, they will have knowledge of specific submarkets that will give you access to off-market or pocket listings to guarantee you access to every opportunity. By having this information, the broker will be able perform an analysis of the market to show what properties are being offered to buyers or tenants. They also should have deep insight into what transactions have recently occurred. This valuable information will show what the market can bear for negotiating a rate or price to reflect the current market. 

 

Due to the nature of real estate, maximizing the operational efficiency of your office space can be a real challenge, especially if your business and space needs are evolving. Often times, opportunities to grow and change are hindered due to the restrictions placed upon them by their office space. Don't let your office space hold you back from those opportunities! Find a tenant representation broker with the expertise you need when expanding, consolidating, or relocating offices, renewing or renegotiating leases or buying commercial property. In the long run, it will save you a tremendous amount of time, money and stress by having someone that you can rely on to bring you the opportunity that you need to become as successful as you desire.