Interested in leasing commercial real estate? If so, you may have come across the phrase “tenant representation” during your initial research. But what will a tenant rep broker actually do, and is hiring one really necessary when leasing commercial real estate?
The Job of a Tenant Rep Broker?
Tenant representation brokers (also called tenant advisors) are a type of real estate agent who exclusively represent the tenant—rather than the landlord or property owner—during commercial real estate transactions.
Essentially, tenant advisors are the leasing equivalent of a buyer’s broker on the purchasing side of the industry. They work independently from the property listing agent, who represents the property owner during the transaction.
Tenant advisors can help you answer questions such as, “Does it make sense to renew my existing lease, or move to a new property?” and “Will this new location meet my needs in regards to site location, price, demographics, market trends, and other factors?”
Benefits of Hiring a Tenant Rep
Tenant rep brokers focus solely on the best interests of the tenant. From identifying the right property to assisting with negotiations, their mission is to advise the tenant from the beginning of the process to the very end.
Why does this matter? When a real estate agent is representing a landlord, they are obligated to act in their paying client’s best interest by selling you on their property…yes, even if there are other properties that may suit your needs better, or for a lower price point. This is a major conflict of interest, and means you’re not able to view the full picture.
Tenant advisors act solely in your best interest, which means they’re invested in showing you the properties that meet your unique preferences and requirements—no strings attached to specific landlords or properties. Once you have selected a property that you like, they will fight for your needs through every step of the process.
Ultimately, having a qualified professional in your court can save you thousands—if not tens of thousands—of dollars in comparison to working with a landlord rep, who may deliberately steer your attention towards their client.
What About Not Hiring a Broker At All?
Perhaps you’re considering forgoing a commercial real estate broker altogether, and are interested in handling the search all on your own. Are there any downsides in this scenario? You bet! Commercial real estate dealings incorporate more complicated, nuanced factors and negotiations than residential transactions.
Commercial real estate listing sites aren’t updated as frequently as many people assume, which means you may be wasting your time inquiring about a listing that is no longer available. Even worse, you may be missing out on the property of your dreams that is vacant but hasn’t been listed yet. In fact, publicly available listing websites only show a fraction of the actual marketplace.
Tenant advisors have their fingers on the pulse of the commercial real estate industry, and are well connected with other professionals. Not only are they more likely to know about properties that haven’t been listed yet—giving you a leg up on other potential sites—they are also more likely to facilitate a response from landlords and their commercial real estate broker.
With a tenant representative on your side, your company or organization has the best possible chance of finding the right property to meet your needs. Contact us today for more information about our tenant representation services.
To learn more about how CRESCO, Greater Cleveland’s leading commercial real estate company, can help you with your property needs, contact us at 216.520.1200, or fill out the form below. A CRESCO professional will contact you shortly.