Tenant representation is a sort of commercial real estate brokerage where a specific real estate agent emphasis exclusively on the requirements of a tenant, instead of being restricted to the lessor or owner. Tenant rep brokers are the real estate industry’s equivalent to a buyer’s broker on the sale side. A regular broker’s job is to ensure occupying the landlord’s properties with tenants. They tend to recommend properties that are not suitable for all the requirements of tenants or they are not priced properly in connection to present market trends.
Why is the tenant rep broker essential?
If an agent or broker is appointed by a landlord, they show you only one property they represent. Regardless of the suitability of the property and their market prices, they are stuck to the owner’s interests and just want to rent or lease you the property. They might seem helpful by showing you every corner of the property, but they will not tell you the crucial complications and issues you might face later. You will know the complete story only when you look at the location by comparing the other properties. A major job of tenant rep brokers is to analyze and have knowledge about multiple properties in the location. In such a way you will get a true picture of the current market condition and you will select the best one that suits your necessities.
Advantages of Tenant representation broker:
Suitability of the available Space:
A tenant rep broker will perform primary analysis to help you understand your exact requirements. They consider the budget, industry type, the number of employees and many other factors to find the best space for the tenant. The majority of tenants start looking for other space when their current one is not up to the mark to serve their needs. At such times, tenant rep brokers will help to analyze the issues like:
Pan of the company’s strength (Is it downsizing or increasing)
What is the plan of using the space? Is it to look out for a collaborative space or private offices?
Do you want extra spaces for employee parking, stock-collection, etc?
Many such queries will be answered by a tenant representative and they will ensure that all the factors are taken into account while they select the space.
Conversation with the landlords:
Landlords do not tend to pick up every call they receive. They would also hire a landlord broker who would be responsible for all their interactions. A tenant rep broker is very useful for such situations where they can interact with either landlord or their brokers with more authority. The landlord broker might speak to tenant rep broker more gently since they would help them in accomplishing various other beneficial deals. All these factors help the tenants to end up with an efficient space that will be value for money and save their time in interactions.
Analyze the Whole market:
Tenant rep brokers are well versed in all the latest market trends and conditions. You might not have the time to go deep into all the details of the properties in the market from data sources. This has a chance of making you unexposed to the best properties in the location. Tenant rep brokers will know the ins and outs of the market as they will constantly interact with other tenants and brokers. Best spaces would be hidden and may also complete the deal before they are even being displayed in the market. You might be able to some good spaces if you toil hard, but you will not find all of them.
Certain Properties Do Not Go on Listing:
You may spend long periods searching through data sources about available spaces that suit the needs. This is a good way to get a fair idea about the present market rates and trends. But there are huge chances that some of the best spaces could never be listed on the site you are looking for. A tenant rep broker will have access to many sites and resources to look out for the best locations present in the market. They will also filter all the requirements, depending on the expected factors, and provide a list of properties that are only best suited to all the needs.
Negotiating Your Deal Term:
Entering into the negotiation process without any previous experience can be scary. If you don’t possess enough knowledge about the latest market trends, then the various terms that could be quoted by the landlord may put in a state of dilemma. Many elements like renewals, allowance, and other specific terms that are used in deal negotiation would be tough to understand if you are not a regular player in the industry.
Connections to Industry Professionals:
Along with the proper selection of space to suit all your needs, a successful process includes a team of industry professionals collaborating efficiently. Tenant rep brokers will ensure that all such crucial players are in contact with your proceedings.
Real estate attorneys: Analysing a commercial lease is an exclusive skillset that would need the expertise of a real estate attorney who is experienced in local laws and customs. This will help in exposing any hidden terms or norms and will not come as a surprise in the future.
Space planners: Having maximum use of the newly rented or leased space is very important for you to have a good beginning. A tenant rep broker will introduce you to the best architects in the locality.
Construction experts: If you require any perform any construction work in your space, adhering to the lease norms, a tenant rep broker will provide you the professionals best prices with the ability to perform expected works.
Newmark Knight Frank is an experienced and professional tenant representation brokers specialized in retail, office or industrial tenant representation in Utah. Stay up-to-date in the real estate market with the latest trends and opportunities with our unparalleled reach, analysis, and observation.