Does Size Matter?
Yes and No.
In theory, yes:
The larger company”…
- Has more leverage over the landlord
- Represents a larger share of the building’s cash flow and profit
- Gives the building a higher occupancy, allowing them to charge more to other tenants
In addition, the better the reputation a company has, the more other tenants will want to follow them into the same property.
However, in reality, no:
Size shouldn’t matter with the right broker who is truly representing your best interests.
With a smaller company, the similar benefits are possible through a pro-active and strategic approach.
If a company is smaller, it is important to first get hold of a trusted and recommended real estate broker or negotiator who knows the business. The broker will have the experience required to compare prior deals made by larger companies in the building, and most importantly, the broker will care about the client’ best interests and negotiating the best deal possible for all of her client’.
Because the broker has significant information on the matter thus providing the client with the leverage needed, the client will get a result just as good as a large tenant that has an “˜importance in size’.
With a solid broker who has the best experience and knowledge, and who cares about the client, a small company can have the best deal, regardless of size.