Welcome to the topic “Tenant Advisory 101 – What Your Tenant Representative Should Do For You“
Looking for a commercial space can be quite a tough feat. More often than not, people are unable to figure out where to even begin. There’s so much to think about, including the budget, location, features, amenities and so on. This is one of the most significant reasons you should count on professional tenant representation to ease your burden.
It’s not easy to find a space that fits your business requirements. There is also the stress of finalizing the terms of the deal. Naturally, you wouldn’t want to end up with a shorter end of the stick. An office tenant representative will be able to negotiate the deal on your behalf and ensure that you don’t incur any losses.
An Introduction To Professional Tenant Representation: Everything It Entails
It’s surprising that many people still aren’t aware of the concept of commercial tenant representation. To put it in simple words, an office tenant representative is an expert in commercial real estate who works for the interests of corporate tenants. He has the expertise and the market knowledge to ensure that his clients get the best deals with minimum hassles.
Keep in mind that there is a significant difference between exclusive tenant representation and other real estate services. Landlord agents often play for both sides. Many Landlord agents will pose as a Tenant’s friend, acting as an intermediary broker to assist both sides, but ultimately their client is the Landlord and their goal is to seal the deal with terms favorable to Landlord. There is a clear conflict of interest in having an agent represent both sides of a transaction. In fact, for this very reason dual agency in real estate sales is illegal in many states.
An exclusive tenant representative works only for corporate tenants. Therefore, you can count on him or her to work exclusively in your best interests and bring you the best deal.
What To Expect From Commercial Tenant Representation
You won’t find yourself with a lack of options when you look for a Chicago tenant representative. But before you sign up anyone, you have to ensure that they are indeed capable of providing you with the best results. Here are some of the benefits you should expect to gain with commercial tenant representation.
The Office Tenant Representative Should Bring 10 Times Worth Value Of The Commission
That’s right! What’s the use of hiring commercial tenant representation if you don’t get the best deal? When you look into the market for a commercial space using publically available listing sites, you will soon realize that these sites have extremely limited inventory. Quite often, there is also out-of-date information available. This is where the knowledge and expertise of your Chicago tenant representative will be valuable.
Your tenant representative will have subscriptions and connections for the tools and resources to provide you with the best available options, including a very large inventory of options that aren’t available on public listings, as well as often knowledge of many listings that aren’t even available on the private databases.
Your tenant representative will help you weed through options and schedule tours of properties that make the most sense. Of course, once you actually find a space that works, your tenant representative will negotiate on your behalf to ensure that you lock in your desired space at the best possible rate.
Getting Tenant Representation Should Make Your Life Easier
When you are running a business, there’s already a lot on your plate. Naturally, you cannot dedicate a lot of time to looking for a corporate space. You likely will also have a lot of questions and concerns about the deal and terms presented to you by the Landlord.
You can count on a tenant representative to be a huge asset in these situations. Furthermore, your tenant representative will strive to ensure that you have multiple options that will suit your requirements so that you can possibly even use these as leverage to negotiate better terms amongst each space. He or she will also make sure that all your concerns are addressed and that you understand the entire process easily.
Remember, dealing with Landlords or their agents can be overwhelming and draining. Why put yourself through so much trouble when there’s a feasible option available? The tenant representative will walk you through the whole process and also take care of the technicalities and logistics.
Tenant Representation Makes Other Services More Accessible
Tenant representatives have a network of their own which can significantly benefit you. If you have moved to a new location in Chicago, you must know how troublesome the whole process can be. It’s not easy to find reliable movers who will take care of your belongings.
It is also pretty challenging to find architects and contractors who are reliable, affordable and will move at the pace you need to get the space ready for your occupancy. Luckily, your Chicago tenant representative will have all the answers to expertly guide you through the process.
When searching for a tenant representative to work with, you should ideally look for someone who has been in the business for a long time. Having long-standing experience in the industry should ensure that your representative has worked with a wide-range of clients and been through a large enough volume of transitions that they will know what to do when challenging situations arise.
You can also expect them to connect you with reliable attorneys, architects, movers, contractors, furniture vendors, and any other ancillary professional that you will need as you move through the process. The tenant representative is your quarterback that will help you do what’s best for your business without needing to take so much time away from actually running your business.
Your Tenant Representation Should Get You The Best Deal
This goes without saying. Think about it. Have you ever dealt with Landlords and their agents on your own? They can really confuse you with their contracts and terms and financial implications of the deals presented.
In addition, a lot of people feel drained by the whole negotiation process and are unable to put up a strong fight. Working with a tenant representative enables you to keep the entire transaction at an arm’s length, while still maintaining a good relationship with your Landlord.
Regardless of the terms the Landlord presents, your tenant representative will help you understand the financial representation of the deal over the entire term of the lease, including breaking down and comparing deals when they may differ substantially as far as single versus triple net leases, tax and operating expenses, or other such included or excluded terms of the deal.
Your representative will provide you with market knowledge to know which terms are or are not fair, and what to ask for in return. The tenant rep will save you from unnecessary hassles and make sure that the negotiation process works in your favor.
Your Office Tenant Representative Should Be Honest
This should go without saying. You cannot expect someone who isn’t transparent to get you the best deals. The entire purpose of getting office tenant representation is to ensure that you don’t end up paying your Landlord more than you have to.
You must ensure that your tenant representative does not have a reputation for fudging numbers or acting in their own best interests instead of yours. It’s not uncommon for agents to push for a higher commission which can be costly for you. When you get a reliable tenant representative to fight on your behalf, you can be assured that he’s working with your best interests at heart.
Tenant Representation Should Be Responsive
When you are looking for a commercial space, you don’t have a lot of time. You cannot put your business on hold forever. Therefore, you should get an office tenant representative who will be responsive and will not leave you hanging. He or she will present you with real estate options as soon as possible and will also not take ages to answer your calls or emails.
Remember, in real estate, time is the key. You have to move fast if you don’t want to lose the deal. This is where your office tenant representative should excel.
What Sets Apart the Great from the Good
A great CRE broker will be able to help you grow your business with a stellar real estate deal. However, they won’t just stop there. A great CRE broker will also help grow your business in other areas as well. Watch the below video to find out what your CRE broker should also be doing for you when not engaging in a transaction:
Get The Best Chicago Tenant Representative For Your Business!
When you have someone who has the knowledge and understanding about how the market works, half of your stress washes away. This is primarily why you should invest some time in getting the best commercial tenant representation. Once you find the right person for the job, you can rest easy, and he or she will take care of the rest.
One way to ensure that you don’t regret your choice is by selecting someone with experience. If your tenant representative has closed deals like yours before, then they should have client testimonials and references to provide it. Ask to speak to previous clients or check out their website or google reviews for testimonials, as the proof will be in the pudding.
Trust me, when it comes to commercial tenant representation, experience matters quite a bit!
If you are interested in working with our expert tream of dedicated brokers, email us at [email protected].
Also read: Commercial Broker Challenge – Top Things To Look For In A Great CRE Broker
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