Gain The Upper Hand
The story goes like this
You thought you would make it easy on yourself when looking at property. Driving around for hours searching for the right property for your business and realized its not the same as looking for residential home. Data and information is impossible to come by and realized the industry just hasn't evolved. You didn't want to bother anyone to show you property so instead you went straight to the listing agent. The deal gets done but not to your liking, you realize you just got screwed.
In today's ever changing commercial real estate market, businesses need direct access to the best information available. No holding back. It's a constant battle as both sides grapple for the upper hand when it comes to negotiations.
Why Tenant Rep
If you are unfamiliar with what a tenant rep, the best way to put is someone that only exclusively represents tenants or business owners. Conflict of interest is inevitable in a real estate transaction. Why mess around with it when it comes your livelihood?
A good tenant rep is not only skilled in negotiation but also well educated with current market conditions. Are some areas of the commercial sector struggling right now, sure. Some might not be as bad off as a lot are making it seem. As with all, its local. Maybe the office market in Minneapolis outperforming the St. Paul? Would you get this information if you went to a listing broker in a Minneapolis high-rise and wanted to know about a property in St. Paul? Your odds might be higher at the blackjack table.
Strategic planning and financial analysis are many roles that a tenant rep has. We can provide help with decision making in complex business environment to help you decide if you need to relocate or renegotiate your current lease and expand or downsize.
- See ALL the properties! Not just ones the listing broker wants you to see. Broaden your search that fit your business objectives.
- A tenant rep has fiduciary responsibility to your business and no one else. You would never have an attorney represent both sides of case or you hire a CPA for your financia'ls. Bringing on a tenant rep to help navigate your business in the complex real estate transaction almost seems like a no brainer.
- Can save you time and money by allowing you to focus on your business and customers.
- Provide an in-depth market analysis to make sure all needs are fully met. Present and future. There are lots of variables that can impact market conditions that need to be examined (ie: foreclosures, new developments, landlord motivations, et al).
- Advise in the best lease terms, rental rates, free rent, expansion and renewal options, construction or tenant improvement allowances, much more.
Money In Your Pocket
Saving money to invest in other places. Isn't that what all owners like to hear? Maybe by using a tenant rep you can save your company $20k, $50k or more, then allocate costs to sectors of your business that matters. Don't waste the time by trying to do it yourself, focus on what matters which for most business is the companies bottom line.
Most tenant rep fees are paid for by the seller or landlord at closing, just like a residential transaction. You could argue over the course of the lease the tenant will pay but landlords have all these costs already worked in. So easily put, no up front fees in most cases. However, make sure you fully understand where the fees are coming from before signing anything.
So here's my question: if a tenant rep can save your business occupancy costs over the terms of the lease (sometimes up to 40%), then isn't it worth it?