When you think of a business about to relocate to a new area, or renegotiate a lease for its present location, you might think the proprietors would consider employing a real estate agent or a lawyer to handle the various issues involved. While both are reasonable options, it may be more beneficial to the business owner to consult with a tenant representative instead. While a tenant rep is involved in commercial and industrial real estate, there are subtle differences between reps and Realtors every businessman should know.
Reps Work on Behalf of Tenants, Not Landlords
Many commercial real estate professionals exclusively represent tenants. Such exclusive tenant reps never work on behalf of owners and developers. Other real estate professionals divide their practice between both tenant and landlord representation.
The Society of Industrial and Office Realtors reports that more than half of those who have earned the Society’s coveted professional designation – “Specialist, Industrial and Office Real Estate” – have practices that include tenant representation.
Tenant reps have made a name for themselves during the past 10 to 15 years, since real estate agency laws required real estate brokers to disclose that they are working on behalf of the landlord, not the tenant. Your goal in working with a tenant rep is to obtain true economic savings and secure space on terms that best serve your needs over the life of your lease. While working on your behalf, a good tenant representative should generate savings and benefits that far exceed the cost of his or her professional compensation.
The Benefits of Working With a Tenant Rep
Having a tenant rep on your side can greatly empower your business and save you money in the long run. A tenant rep can:
- Analyze your space needs.
- Investigate all available properties and determine which are the most appropriate for your needs.
- Create a bidding war among several landlords for your business.
- Protect you during lease negotiations so that you come away with terms that meet your present and potential future needs.
- Serve as a buffer between you and the landlord.
- Identify lease provisions that could cost or save you money during the lease term.
- Handle the paperwork and other details of the lease negotiation.
- Settle disputes that arise even after the lease is signed.
- Spotlight the savings.
The goal of the tenant rep is to satisfy the business owner, and determine the perfect location for all companies seeking to do business anywhere they choose.