Insights
Whether it be a growing business looking for larger office space, a retailer trying to find the perfect spot to thrive, or a team searching for industrial space, the decision of where to land is a big one for any company. This process of finding space can be challenging for business owners on multiple fronts, and that’s where tenant representation comes in: making the process smoother and easier.
What is a Tenant Representative?
A tenant representative, also known as a tenant rep, is a commercial real estate broker with one sole focus: the tenant. Having this expertise and unique perspective on a company’s side during the leasing process – and beyond – can add a lot of leverage and benefits.
Benefits of Hiring a Tenant Representative:
1. Zero Conflict of Interest
A standard commercial real estate broker has the ability to represent the tenant and also the landlord. Unlike a tenant representative, when a broker fills the role of landlord representative, they are bound to represent the property owner’s interests. In situations where they fill both roles, it can be a tricky balance to find. But with a tenant representative focused solely on you as the tenant, that complication disappears. With you as their only concern in a transaction, you can fully trust that the tenant representative is putting your interests first.
2. Negotiation Power
Lease negotiations can often be complex and time-consuming. Leases can be pages and pages long, full of language and writing that may be hard to understand without a background in real estate. The knowledge and negotiation skills tenant representatives bring to the table not only save tenants time but often money as well. Better terms can often be reached with a tenant representative at the helm of negotiations.
3. Market Insights
Tenant representatives not only have a grasp on the market that can help the tenant better understand what is listed, they also have access to off-market options. Their connections and network can allow properties that aren’t yet available to everyone to be accessible options in your search. Having a tenant representative on your side gives you the power to gain inside information you otherwise wouldn’t be able to get.
4. Established Network with Landlords
Due to the connections tenant representatives build, they often have well-established relations with landlords and property owners. Having these connections can assist in simplifying the leasing process and provide tenants with even more options and a further reach.
5. Cost Efficiency
Adding another person to your team may sound and feel like an added cost, but when the tenant representative streamlines the leasing process, many of your costs can actually decrease. Along with negotiations that can save you money, with someone else spearheading your search for a property, handling the leasing logistics and doing all they can to find the best space and deal possible, you are freed up to focus on your business. This allows you to efficiently bring in regular revenue while the search for a space and the leasing process unfolds.
6. Subleasing Knowledge
An additional way your tenant representative can assist you is by identifying subleasing opportunities within your new space. This will optimize the use of the space and create additional income. Furthermore, if you ever outgrow your space, your tenant representative could help you pursue a sublease.
7. Continued Support
Though it may seem like a tenant representative’s job is done once your lease is signed, that’s usually not the case. Your tenant representative will be available to contact if questions about your lease ever arise, and they sometimes will even call you to check in and see how things are in your new space. The tenant representative will also step back in and help when lease renewal time comes around; anything they did during your initial lease negotiations, they will do again during your renewal. If the opposite occurs during renewal time and you find that you need to move spaces again, the same tenant representative can lead your search for a second time.
Conclusion
All in all, hiring a tenant representative turns out to be an investment in your company, not an added cost. With a tenant representative on your team, a process that used to be overwhelming, time-consuming, and expensive takes up less of your time and costs less for your company. A tenant representative can be a game-changer, ensuring your best interest is placed at the forefront and you have continued support and success.