You will likely need to secure commercial real estate space for your business a few times in its life, but your landlord negotiates leases relatively frequently. When searching for and negotiating for your space, it would be wise to consider utilizing the expertise of an experienced local commercial real estate tenant representative to orchestrate the best possible terms.
A tenant rep is an expert commercial real estate broker who helps a prospective tenant find, lease and build-out commercial rental space. Most landlords have professional real estate representation … so why not you?
An effective tenant rep broker brings three essential skills to the table to serve you and your business. These include skills such as local market expertise, professional negotiating and transaction management.
- Intimate Market Knowledge
The first and most important requirement of a tenant rep broker is an intimate and current knowledge of your local real estate market and submarket. The rep not only needs an up-to-the-minute awareness of the available inventory, but also of what concessions are being offered. The bottom line being, market expertise is vitally important in serving the business owner looking for commercial space.
- Exceptional Negotiation Skills
The best negotiators understand the art of using their market knowledge in conjunction with their client’s goals and objectives, to get the best deal possible. Most agree that negotiation is more of an art than a science. While most professionals learn negotiating techniques in handling everyday transactions, the application of those techniques in commercial real estate requires a specific set of focused skills.
- Transaction Management
There are still a lot of balls to juggle after the selection of the space, especially in first generation spaces that requires substantial construction. The best tenant reps are part of a team that will allow the management of, or performance of space planning, financial analyses, demographic and market studies, engineering, and construction. To manage these transactions, a well-qualified tenant representative must possess the skills to assemble and coordinate a diverse multidisciplinary group of professionals.
What Does It Cost?
Many tenant representative brokers will tell you their services are free, but their compensation must come from somewhere, right? Correct. Building owners budget for real estate commissions in their pro-forma and a commission that is not paid, rarely finds its way back to a tenant’s pocket.
In the typical lease transaction, the landlord pays for their broker as well as the tenant rep broker. The landlord’s broker represents the property owner while the tenant rep broker represents you and your business. This is similar to the brokerage relationships when buying and selling a house.
“Commercial space transactions, whether for office, retail or industrial, are long-term decisions that can affect the future operational and financial performance of your company.”
In today’s competitive market, you need more than just a real estate agent who can identify vacant space and negotiate lease terms. You need a trusted, experienced consultant with the ability to take your skills in sound business management and leverage them to your advantage in the world of commercial real estate.
Larry Singleton is the owner of Singleton Real Estate, Woodstock’s oldest continually operating commercial real estate firm. Established in 1988, we empower our clients by providing them with exceptional real estate service.
Larry lives in Woodstock Georgia, where he previously served as County Commissioner, representing over 70,000 constituents. He enjoys hot yoga, live music, mountain biking, hiking and golf.
If you use, occupy or invest in real estate, Larry is the one trusted, experienced and skilled advisor you need in making all your real estate decisions.