Should a Tenant Use a Broker For Representation?

Tenant Representation 

Who is looking out for your best interest when signing a new lease or a renewal? Will the Landlord look out for your best interest? A good Tenant rep broker will look out for your interest specifically as a Tenant, and advocate for your needs with the Landlord.

What Does It Cost

Does a Tenant rep broker cost money? Not typically, usually the Landlord pays the broker a commission or a finder’s fee. A Tenant rep broker is the best choice when considering whether to self-represent or use a broker. There are several things that a good Tenant rep broker will do: bring value by knowing and understanding the market, leverage and negotiate on your behalf, and assist in understanding the total cost of the lease.

Market Knowledge

Having good Tenant representation will level the playing field. How much market knowledge will a Tenant have vs a Landlord? How much time do you as a Tenant have to learn the market, and make sure that you are getting a good deal? I would imagine if you are running your business, you have a specialty, and time management is important. It makes sense to hire a broker to represent you that is immersed in the market. They have the knowledge to assist you in making a good, informative decision. A Tenant rep broker will have in-depth market knowledge, and be able to do a lease analysis on the presented terms. The broker will also negotiate on your behalf with the Landlord. Typically, a good broker will be able to solve problems, think outside the box and present solutions for any issues that arise.

Representation

When you use a Tenant rep broker you are making Landlords compete for your lease. When the Landlord knows that a broker is going to be showing a Tenant all the other properties on the market, they are more likely to negotiate and compete for your business. This usually results in a lower lease rate and more favorable terms. Companies that use a tenant rep broker typically end up paying less for their space.

Avoid Making Mistakes

A good broker will help you avoid making mistakes as well as save you money over the term of the lease. In addition, they will  assist in choosing the best location, evaluate market trends and demographics of your new or proposed location.

 Tenants have nothing to lose by choosing a broker to represent them!

 “Tenant representation brokers are basically what they sound like; they handle the tenant side of commercial real estate transactions. Sometimes referred to as tenant advisory or corporate services, a tenant rep is there to assist companies and organizations throughout the entire leasing process, from the initial needs assessment and site selection to occupancy, lease expiration, and beyond.” **https://aquilacommercial.com/learning-center/what-is-tenant-representation-broker-what-they-do/