Your lease is up for renewal and you are pressed for time before expiration. Things seem a lot different compared to the younger days of your business. Mr. or Mrs. Landlord has been your acquaintance over the term of your lease up to a point. As you are reading the terms of your lease renewal, you stop and rethink things and wonder where you stand in today’s economic climate.
Specialists bring to the table systematic best practice techniques to help you gain success in your bottom line. Brokers in Commercial Real Estate with a focus on tenant representation can make a difference in both your strategic planning and finalizing goals. Here are some of the advantages:
1. Tenant brokers know how landlords think and the best way to leverage it. Quality brokers understand how to leverage their knowledge. This holds landlords accountable which leads the focus to qualified ones to gain the best fit for clients. This process brings forth expertise with markets on a regional basis, competition amongst other landlords, and the ability to present successful outcomes to clients.
2. Tenant brokers even the negotiation playing field. It‘s common practice for landlords to gain the upper hand when negotiating with tenants who do not have a broker by their side. Landlords have ample experience with a variety of tenants. They have knowledge of the lease clauses and have the ability to wait out their tenants. Tenant brokers have knowledge on sniffing out nonnegotiable elements from an attempted landlord bluff.
3. Tenant brokers can analyze best economic space layout. Quality brokers have the ability to help you determine your space needs ranging from the optimal amount of space required to pointing out several layout options. This will save time from evaluating buildings or negotiating for space that does not serve best use. Landlords are not in the business of economic consultation for your space layout.
4. Tenant brokers understand the impact of office layout, location and amenities. In some instances, especially to the corporate tenant, there are other factors that should be considered when exploring new sites. One example would be by relocating, one of the advantages of providing quality of life to your employees. In today’s economic structure, qualified employees make employment decisions based on provided suitable perks. Some examples may be an easier commute, an on-site cafeteria, fitness center, nearby dry cleaners, shuttle service, built-in office private bathroom with a shower and, my favorite, an elevator that chauffeurs to the main office lobby. These perks at times may be neglected by even the most high caliber company.
5. Tenant brokers can carefully fine-tooth comb your lease. Important contingencies can be overlooked without a quality broker, leading to drastic measures. As a result, landlords have the luxury of the advantage. Lease clauses can be looked over carefully by the tenant broker to ensure the client understands the clauses before a several year commitment is signed.
6. Tenant brokers understand tenant needs. Tenant brokers understand tenant needs and will do everything in their power to abide by them. Tenant brokers are in the business of relationship building and count on producing quality representation for future business, referrals, and positive media reputation.
7. Tenant brokers have a variety of contacts and use them to help their clients. Tenant brokers will sometimes consult with other professionals in the industry, such as architects and real estate attorneys to help maximize the deal. At times tenant brokers will form a team to ensure your interests are protected.
8. Tenant brokers understand how to assess buildings. Tenant brokers understand the advantages and disadvantages of your current and/or future space. Things like proper parking, square footage, the design/environment and layout of the proposed office can be important when determining a renewal or relocation.
9. Tenant brokers believe in themselves. The ability to advocate often among entrepreneurs can be a rarity. A quality broker is confident with his/her own work as well as themselves. This means that quality brokers will have the capability to work for their clients on an executive level. A quality broker will be able to identify with you, your company, and your values resulting in a high level of success.
10. Tenant brokers inform you of what is happening in the marketplace. Things change very quickly. The best use of your current space five years ago may have declined due to what is happening in the current marketplace. New developments, new business competition, and market variations are some examples of this. Tenant brokers use a systematic practice of keeping up to date with availability, leased, non-leased, infrastructure and many other factors that relate to your renewal or relocation. A quality broker will offer you proper representation giving you the upper hand for economic growth and success.
Michael Atienza specializes in Buyer and Tenant Representation at Magnusson Balfour Commercial & Business Brokers