When I’m on the networking circuit, I love the reactions of people as they attempt to grasp the concept of my profession. My niche of commercial real estate is so narrow and focused that many people have never heard of a tenant rep broker. Let’s dive into the subject and allow me to explain how I fill my days.
A Tenant Rep broker helps companies with their leased commercial real estate. The type of space can be industrial, office or retail space. The transaction can be a new location, renewal, expansion, contraction, sublease or termination. The cost of my services to my client for most transactions – nothing, the landlord pays my commission. No, this is not a conflict of interest – we’ll save that for a future blog entry. The value of my services is wide-ranging. Not only do I save my clients money, but I also save them invaluable time. I create more value with my knowledge of lease terms, landlords, construction, financial comparative analysis and more.
Savvy tenants utilize a tenant rep broker to level the playing field. My typical routine with a standard renewal and/or new office location is:
1) Meet with a potential client for a half hour to learn about how the company operates and discuss its specific criteria for the office
2) Produce a group of properties that fit this criteria.
3) The client narrows the field and then we tour those properties.
4) The client’s feedback creates a short list and then I solicit proposals from those landlords and the negotiations begin. I produce a financial analysis comparing the different properties and the various rounds of proposals. We may require a meeting with their architect to modify the layout, get construction estimates and other details. I take care of these things.
5) I obtain the landlord’s initial lease draft then insure all our business terms are in the lease. I provide the client with discussion points on potential modifications that the client can discuss with its attorney.
This process sounds simple, but it can take anywhere from six weeks to over a year depending upon the complexity of the transaction. I keep everyone on track and challenged with my candor, market knowledge and aggressive negotiating. How about it, are you interested in an advocate for your office lease negotiations?