10 Essential Reasons to Work with A Tenant Rep Presented by Mark Rauch

"Be creative while inventing ideas, but be disciplined while implementing them."     -Amit Kalantri-  

Making an informed decision about your office space needs by utilizing the services of a seasoned tenant rep that possesses the expertise, knowledge and experience to guide you in the right direction will save you much time and grief and will ensure a real estate agreement that will work for you over the long term.

By handling the majority of groundwork, a good tenant rep will streamline the entire process and generate superior results for their clients.

Here are 10 good reasons to work with a tenant rep:

1) We save our clients valuable time: Finding office space and negotiating a lease is a time-consuming process that can pull business owners and corporate decision makers away from the day-to-day operations of their business. Time is money as the saying goes. We take care of the communications with the landlord leading up to the actual signing of the lease.

2) Our services are free: Tenants are not responsible for paying brokers. Our fee is covered by the landlord. The tenant rep typically splits the commission with the listing agent. Although the tenant rep fee and other economic items technically constitute a percentage of the lease rate, it is our job to negotiate the lowest rate and most amount of concessions the market will bear so that portion becomes insignificant. Why should the landlords broker that is invested in negotiating the most advantageous transaction for his client claim 100% of the fee? The tenant deserves proper representation.

3) We help assess a company's space needs: We give an idea of how much physical space the tenant will require to operate efficiently yet comfortably. We facilitate planning for expansions and contractions to ensure the tenant is only paying for space they require.

4) We are connected: By taking advantage of our relationships with fellow brokers, building owners, real estate professionals and ancillary professionals, tenant reps can educate clients about the best space options and negotiating approaches in the market. An active tenant rep has their pulse on all aspects of the market.

5) A good tenant rep will help clients identify important needs: The look and feel of an office is important, building image, access to public transportation, parking and building amenities are just a few of the things that businesses should evaluate when leasing office space.

6) Seasoned tenant reps are well-versed in the local real estate market: We have the ability to match a company's specific requirements. Excellent tenant reps help clients identify the space that will best meet their current and future needs in all areas.

7) We create leverage so tenants have more negotiating power: It's important that tenants come to the negotiating table prepared. An awesome tenant rep is the key to unlocking value during a negotiation, whether it be through lower rents, higher tenant improvement allowances or some other concession. Most landlords have been through the negotiation process countless times. Most tenants that go it alone are at a significant disadvantage. The landlord must know that you are not a captive tenant and that you are also negotiating with other landlords simultaneously. Tenant reps are experts at setting that stage in a non-confrontational manner.

8) We know lease documents: Leasing agreements are full of clauses and provisions that dictate how much flexibility tenants have over the course of their lease. Most tenants are eager to move into their new space and may not examine their lease as carefully as they should. A competent tenant rep will ensure the leasing agreement reflects prior negotiations and will recommend a real estate attorney who will review and make comments and revisions on the lease document before execution.

9) Relationships can last for decades: Tenants that maintain a relationship with their tenant rep have a head start when it comes time to renew their lease or move to another location. Tenant reps spend a lot of time getting to know their clients, so their familiarity with a company's requirements becomes invaluable.

10) If issues arise with your landlord the tenant rep will act as your first line of defense: A tenant rep can help resolve landlord-tenant disputes and save clients from awkward exchanges with their landlord. If the problem cannot be resolved, tenant reps can help tenants evaluate their options and recommend proper legal representation.

Call me to discuss proper timing, the process and opportunities even if you have multiple years remaining. 213-430-2469

Nothing contained herein is to be considered legal advice. Always seek legal advice when evaluating any legal document.