Why should tenants engage a real estate broker?

AuthorMangum, Jesse Knight
PositionREAL ESTATE

The process of securing office space for organizations is a complex and time consuming practice. Whether the challenge is narrowing down to pinpoint a new location that better fits the tenant's needs, or if the tenant is simply looking to extend their current lease; a market expert and a professional lease negotiator is essential to a successful decision. Tackling this process without the benefit of an experienced commercial real estate broker only increases the chances of making the wrong move.

In my experience, tenants typically do not engage a real estate broker for two reasons; (1) they do not understand the value of the service brokers provide; or (2) they have a misconception that by eliminating the broker's real estate fees they will get a better deal.

Below are benefits a tenant representation broker can provide to the corporate office space user:

  1. An experienced tenant representation broker will provide the following key services:

    1. Determine immediate and future space needs:

      A broker can assist the tenant in determining their space needs ranging from the optimal amount of space required, as well as evaluating various layout options. this will prevent the tenant from spending time evaluating buildings or negotiating for space that does not best serve their needs, as well as prevent the tenant from leasing excess amount of space.

    2. Provide an accurate and complete picture of the market opportunities:

      This involves more than getting on-line and scanning listing services for availabilities. A knowledgeable broker can identify a property that is not an obvious choice to meet tenant needs resulting in lower costs. The broker will knoW the market inventory, where deals are being signed and under what leasing terms. They can also provide insight as to how various building owners operate their properties and the various features of a particular property.

    3. Create leverage in the negotiation process:

      Even in a tight market, competition for tenancy is the great equalizer in the negotiation process. A broker will implement an effective negotiation strategy designed to win the concessions that meet the tenant's unique needs and structure the best leasing terms attainable in the marketplace. The mere presence of a respected tenant representation broker sends a message to landlords that the tenant will be aware of all opportunities in the marketplace and that they have invested in someone to take charge who understands all the nuances of the...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT