Office Tenant Representation: Why You Need One

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Office Space

The commercial office leasing procedure can be a tricky one for many commercial tenants. Not everybody is well-versed in the commercial real estate field and going in on your own to lease office space can be a venture into the unknown. As a business owner, when you go into leasing office space, you want to be able to make intelligent, businesslike decisions.  With a tenant representative to aid you in the process, you can make the right business decisions with ease.

Here are some reasons why it’s important to have a tenant representative with you as you take every step in the leasing process:

  • A Tenant Representative Knows The Drill: As a whole, a tenant representative is the commercial real estate professional you need as they know how the procedure goes. You want to have the assistance of a professional so that you get the right property at the right price.
  • Help to Determine Your Leasing Needs: A tenant representative will help you to determine your leasing needs. In other words, how much space you need, what amenities you should have, the location which will be most ideal for your business and many more considerations. The tenant representative will think of all of the things you may miss and more.
  • This Real Estate Professional Knows The Market: When you lease commercial offices, you may not know what the commercial real estate market looks like at the time. Therefore, you may not know what the cost of the commercial lease is and what the norm is for leasing commercial real estate.
  • Negotiation Skills: A tenant representative is the perfect individual to have with you when you need to negotiate your future commercial space lease.  These real estate professionals are adept at negotiating these types of commercial office leases and will get you the best deal on your future lease.
  • Tenant Interest Protection: A tenant representative acts in the best interest of their client, the tenant. In something as difficult as a commercial real estate transaction, the tenant needs someone to act in their best interest and help them through the oftentimes difficult portions of the transaction.With the assistance of a tenant representative, you will feel secure in having this professional with you along the way.
  • Maintain Order In The Leasing Process: With commercial real estate leasing, there are quite a bit of steps in the process. The tenant representative knows how the procedure goes and will help to maintain order along the way. This guidance is especially important for the tenant who may not be as experienced with commercial leasing as is the landlord, who probably has gone through quite a few commercial real estate transactions in the past.

Going into a business transaction such as a commercial real estate lease without a tenant representative is simply not a good business move to make. In order to make your next lease agreement as favorable as possible and get the office space you desire, make sure that your tenant representative is present there with you.

Office Space Lease Negotiations

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Office Space for Rent

7 Key Points To Negotiating Your Office Lease

1. Be Ready, Willing and Able to Walk Away

The biggest mistake many tenants make is not developing legitimate alternatives to their first choice, whether a new space or a lease renewal.  If a landlord believes you’re not willing to switch to a different property, you lose your negotiating leverage.

2. Start the Process Early

Time should be your ally, not your enemy during negotiations.  Landlords know that the managers of other buildings can take six to eight months to create a space plan, get construction pricing, agree on a rental rate, prepare a lease document and ready the space for occupancy.  If you wait too long before asking for a renewal proposal, you’re telling the landlord that you’re not considering any other options.

3. Know the Whole Picture Before You Start Negotiations

Is the building being sold?  Is the largest tenant moving out?  How much free rent did the last tenant get?  Does the building have HVAC or parking problems?  What is the landlord’s financial situation?  Candid, complete answers may not be forthcoming from the landlord or his broker.  Expert research can make sure that what you don’t know won’t hurt you.

4. Make Landlords Compete For Your Business

The key to a successful negotiation is creating competition between your current landlord and other landlords in the area.  You should have an experienced advisor providing the proper market research, lease comparables and the negotiating skill to use that information to create leverage for you.

5. It’s In Your Best Interest To Have A Representative Negotiate For You

Unless you’re a real estate professional, it’s not a good idea to negotiate a lease deal directly with the landlord’s broker.  An experienced tenant representative will help ensure that you receive the best possible rates, terms, incentives and lease clause protections.  Remember, the landlord’s representative negotiates leases every day; you may do it once every 3 to 4 years!

6. Hiring A Tenant’s Representative Doesn’t Cost You More Money, But It Can Save You Money

Occasionally a landlord will “try to save you some money” by discouraging you from engaging a tenant representative.  Don’t be fooled.  He’s not doing this out of the goodness of his heart.  He knows that without a tenant representative you’re more likely to be in the dark about market rates and terms, and less likely to shop the market, or consider other alternatives.  The at means more money in the landlords pocket.

7. Make Sure You Are Comparing Apples To Apples

Business owners who are not experienced with commercial real estate often find it difficult to perform a true “apples to apples” comparison of different facility choices.  Lease terms such as full service gross, modified gross, triple net, tenant improvement allowances, rental abatement, escalations, base years, operating expense stops and loss and load factors can obscure the true amount you’re paying and make legitimate comparisons difficult.  A good tenant representative will sort through all this for you.

How To Choose A Commercial Office Space Tenant Representative

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As a business owner searching for a commercial lease for your company, you have to make sure you take every safeguard possible in the leasing journey. You want to choose a commercial office building which meets your needs and get a lease on the property which benefits you as the tenant. Although you can embark on the search alone, it is much better to do so with a commercial tenant representative by your side. The following will highlight how to choose a commercial tenant representative to help you in your search.

Review Your Options Before Settling On a Specific Tenant Representative

The first thing you need to know is never pick the first tenant representative who comes along. There are plenty of options when it comes to this type of professional. Even if you narrow it down to a single tenant representation firm, you want to have a few options in front of you prior to picking the tenant representative who will represent your commercial leasing interests.

Choose a Commercial Tenant Representative Who Will Listen To What You Want

Although you want your tenant representative to be a go-getter, you also want your commercial tenant representation professional to listen to what you are saying. If you have a certain commercial office setting in mind to lease, you want your tenant representative to hear what you want and apply it in the search for the ideal office space to lease. You can usually get a good feel for this aspect in the initial meeting with prospective tenant representatives. If you feel as if these individuals are listening to what you want in an office space lease and are going to help you get that type of commercial office space to rent, then rest assured that this is an individual who will take your ideas and run with them.

Find a Tenant Representation Professional Who Knows the Target Area Well

You should also pick a tenant representation professional who knows the desired office space lease area well. The commercial tenant representative should know the target area so well that they will be able to take you around to the various options quickly, efficiently and with ease. Also, when your tenant representative is familiar with the desired locale, chances are that they will know what is common in that area with regard to lease terms, pricing and landlord requirements. When your tenant professional knows the surrounding vicinity, you can feel confident that they will steer you in the right direction and help you to find the perfect commercial office space to lease in a stress-free manner.

Searching for a commercial office space to lease with a commercial tenant representative by your side simply makes sense. This professional knows how to direct you to the right potential leasing options, help you find the perfect office space to rent and make sure that your lease terms are acceptable to you. When you have a commercial tenant representative help you out with locating commercial real estate to lease, you can have the confidence in knowing that you are in good hands the entire way through the leasing process.

Questions To Ask A Tenant Representative

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A tenant representation specialist is an individual who will help commercial business owners find offices to lease.  This professional knows the ins and outs of the commercial real estate business and will help the office tenant every step of the way when it comes to finding a property, securing a lease and even renewing their current office lease to get the best terms.  Before you select a tenant representative to help you with your commercial office space leasing needs, here are some questions which you should ask them to find the right one for your situation:

What Tenant Representation Services Do You Provide?

Not all tenant representatives are the same when it comes to services offered in the tenant representation field.  This is why it is always a good idea to ask your prospective tenant representation professional about the services they provide.  Although many tenant representatives will offer services to get you through the commercial office space leasing process from start to finish, some may not offer every single tenant representation service.  Therefore, it is always good to ask ahead of time so you know exactly what services will be provided by your tenant representative if you choose to use them when finding a commercial office space to lease.

What Is Your Experience In The Tenant Representation Field?

You will find that tenant representatives will have varying experience levels.  Before selecting a tenant representative you should always ask about their individual experience level.  By doing so you are determining how well-versed a particular individual is with regard to the tenant representation field.  Although experience alone will not dictate the total qualifications which a tenant representative possesses, it is always a good thing to know.

Do You Exclusively Represent Commercial Office Tenants?

Also, you should always ask the tenant representative if they only represent commercial office tenants and not the landlords.  This is important as you want your representative to be on the side of the commercial office space tenant at all times and not have a conflicted interest if they represent commercial office space landlords as well.

Why Should I Use A Tenant Representation Professional?

You should ask the tenant representative why they think you should use a tenant representation professional.  This is a way for you to see how the tenant representation professional will sell themselves to you and also make you sure in your decision that hiring a tenant representative is in your best interest as a commercial office space tenant.

What Is The Process Like?

Inquire as to what the process is like as it pertains to leasing commercial office space.  Ask them to walk you through the procedure and let you know what happens from start to finish as well as what role the tenant representative plays in the entire process.

How Can I Help To Make The Tenant Representation Relationship Successful?

It will also be helpful if you ask the tenant representative what you can do in order to make the tenant representation relationship a successful one.  Ask what information you can provide and what else you can do in order to enable them to help you find the best office space to lease.

By asking these questions of your tenant representative, you will be sure to get the perfect professional to help you to secure a commercial office space lease for your company.

Office Space Tenant Representation

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Office leasing is a popular rental option these days.  It allows business owners to have a place to engage in all of their office dealings yet not have to worry about the hassles which often go along with owning commercial office property.  An office tenant representative will protect the interest of you, the business owner, and help to make sure that your leasing experience is a success.  There are many different benefits associated When looking for a rental office, it is best to have office tenant representation along the way.  with office tenant representation and some of the more pertinent ones will be discussed below.

An Office Tenant Representative Will Help You to Choose the Best Rental Property

Frequently, when a business owner is shopping for a rental office, they may not know exactly what type of property they need in order to properly fulfill their needs.  When you have an office tenant representative on your side, the tenant rep will be able to look at the different office buildings with you and help you to choose the best one for your business needs.  The office tenant representative will take into consideration your line of work, need for space and number of employees which you will have in-office at any given time.  With a reputable office tenant representative on your side, choosing an efficient and proper commercial rental property will be as achievable.

Office Tenant Representatives Help Commercial Tenants Understand and Negotiate Leases

Another extremely important aspect of having an office tenant representative is that this individual will help you to understand the lease and negotiate the lease terms so that they benefit you the most.  Oftentimes leases, especially commercial leases, are so full of legal lingo that the commercial tenant will find it difficult to understand what it really states.  With office tenant representation, you will have an advisor to help you understand the terms, leasing process and current market terms, you as the future office tenant will have fewer? as your office tenant representative is well-versed in this area and highly capable of explaining it all to you easily and quickly.  This will help you to negotiate the terms of the lease so that it is fair to you and will benefit you best in the end.

With Office Tenant Representation You Are Safeguarded Throughout the Lease Term

Once you sign the office lease, the relationship between you and the office tenant representative should not end there.  When you have experienced and qualified office tenant representation, you should have that rep by your side the entire term of the lease.  This is helpful should any issues arise during the lease term, as your attorney and office tenant rep can speak with the commercial landlord on your behalf.  The office tenant representative can help be the mediator and ensure that your rental relationship with your landlord is as amicable as possible.

Office Tenant Representation Is a Wise Move

When you review all of the benefits associated with office tenant representation, it is easy to see why this type of safeguard is simply a wise move to make.  With an office tenant representative by your side, you can make the best rental decisions and ensure that your office rental situation is as good as it can be.  Again, your office tenant representative will protect you and your business by helping you to choose the right office setting and negotiate the best office space terms.  When you have a qualified office tenant representative at your service, you can focus on other business-related duties while the office tenant rep deals with office rental issues for you.  All in all, office tenant representation is the way to go when embarking on renting commercial property.