The Reasons Why Tenant Representation Is Important When Leasing Commercial Property
Many people do not realize that having tenant representation is very important when leasing a commercial property. There are many benefits that you get from having tenant representation that you need to know about. These benefit could make the difference between finding the right commercial property for your business and not.
Getting Access To More Properties
When looking for a commercial property on your own, you may think that you have seen everything on the market. This is due to the fact that there are a lot of websites and real estate tools that you can access and use in your search. The truth is that this is not all of the property that is actually on the market and only a tenant rep will be able to help you see everything. The properties that are available to people not using tenant representation are generally only a fraction of the properties on the market. The best spaces in your area will generally get leased out before they are available for public viewings. These properties are also the ones that your tenant representation will have access to. A tenant representative will generally have their own real estate industry tools that they use to find new properties. These tools can often find properties that have not been marketed, but are available for leasing. This is one of the primary reasons why you should look at working with tenant representation. Finding properties before they are marketed will also lower the competition you face when trying to secure the property.
Local Market Knowledge
Helping your access more properties is only one of the benefits that come from tenant representation. Another is the fact that they have local market knowledge which can help you find the right property for your business needs. A tenant rep will be able to determine the type of property your business needs and which properties on the market will be the best fit.
Tenant reps are generally experts on the local commercial market. This means that you can rely on them to identify the property you need and determine what you should be paying in rent. Local knowledge ensures that they know what the commercial market is doing and if the property you want to rent is actually being overpriced. This can make a lot of difference to a smaller business, but larger businesses can also benefit from getting the right rent.
Tenant representatives will also be able to advise on the most commonly used lease types in the area. This can help you determine if you should accept a proposed offer or if you can try to negotiate a different lease type. The type of commercial lease you have will affect the amount you pay and what you are liable for which is why you need to be careful.
Help With Negotiating Terms
Even the most experienced commercial tenant can become confused with the progress of their deal or determining which side has the most leverage. This confusion can cause a lot of problems when you are renting because you could sign a lease that is not ideal for your business. This is where a tenant rep will be able to help as they understand the changing nature of commercial leasing agreements.
Tenant representation specialists will also be able to handle any negotiation with the landlord for you. The negotiation process can take a lot of time which is something that you may not want to worry about. When you hand the negotiation to the representative, they will work on it and manage the entire leasing process for you while you focus on your business.
There Are No Conflicts Of Interest
Many people believe that it might be easier to work a landlord’s representative because this is a direct link to the property. This is not actually in the best interest of a tenant because these representatives do not have your interests in mind. Landlord reps and legally and ethically bound to look out for the best interests of the landlord and not the tenant. This means that they could put forward suggests that are better for the landlord than they are for you.
This is not something that you have to worry about when you have a tenant representation specialist. This is due to the fact that they are legally and ethically bound to have your best interests in mind. This means that they have to find the best space for your business and ensure that you get the right lease.
Their Services Are Paid For
Many people do not realize that the service of a tenant rep will be paid for already. The fee that you pay for tenant representation will be built into the cost of the space that you are going to lease. Landlord will generally pay a single commission fee which is split by both sides of the deal. This means that you can get all the benefits of a tenant rep without actually having to pay them. Are you planning to invest in retail space? If yes, do check out the pros and cons to invest in retail space.