Tenant representation is the term the Commercial Real Estate (CRE) industry uses to describe an agent that focuses solely on the needs of a tenant. A tenant representative has no ties to the lessor or landlord. Tenant reps are in CRE what a buyer’s broker would be on the sale side of the industry. There are many benefits to working with a tenant rep when leasing CRE.
Nothing but the whole truth
When a CRE agent works for the landlord, they have an obligation to represent their best interest. Therefore, you probably won’t get the whole truth and nothing, but the truth. It doesn’t matter if the property is the best fit or not for your needs. Their responsibility is to their client.
Some deals may be good, but there could also be better deals out there. An agent working for the landlord isn’t going to look at other properties that may be better. The landlord’s rep is sure to focus on the positive sides of the property that they represent. They may seem nice and helpful. The landlord’s agent may even seem like they’re telling you the whole truth by highlighting some issues. However, they may also avoid issues that could kill your interest in the property.
The whole truth comes out when you start researching multiple properties. An agent working for the landlord may tell you everything there is to know about the building. However, they won’t tell you about other properties. You deserve to look at all properties that may fit your needs. Your business deserves the best deal possible so it pays to compare available properties and negotiate the best deal possible.
Part of a tenant representation broker’s job is to find multiple sites that may fit your need. Your tenant rep should also be able to highlight the pros and cons to all the available properties. A good tenant rep will look for all the facts to all available properties and present nothing, but the whole truth. Your tenant rep should also be able to tell you the history of the local market.
It’s not just about finding a good location. The key to a successful lease deal is finding the best location at the best price.
Your tenant representation levels the playing field
The landlord typically has an agent presenting the property and deal in their best light. Your tenant representation levels the playing field because they only have your best interest in mind. The tenant rep works for you and they are responsible to aggressively represent your best interest. A good tenant rep will fight for you every step in the way of the negotiating process.
The tenant reps job is to keep your confidence and push for the terms that best fit your needs. They have no responsibility to make sure the landlord gets the best deal. A tenant representative will use all the skills and knowledge to secure the best terms possible. They’ll know what tenant can negotiate in a lease better than anyone.
Working with just a landlord rep will put you in a much weaker position. In many states, a landlord’s rep will owe you a basic standard of good care. However, the landlord is the one cutting their check and building the reputation among other property owners. You need a representative that wants to build their reputation by getting you the best deal possible. Loyalty and complete trust are what you deserve.
A Cost-Benefit Analysis
At this point, you may be thinking about a cost-benefit analysis. It makes sense to wonder what good tenant representation will cost you so let us dive into that.
A tenant rep’s knowledge, negotiating, and service benefits can potentially save you thousands or even millions of dollars. A good tenant representative will do much better for you than the landlord’s representative will ever do.
Now, you are probably wondering what all this help will cost you, right? Well, working with a tenant rep is almost always free for you. Landlords agree to pay a set commission to their broker. If you’re working with a tenant broker the fee gets split by the brokers. The tenant representative has a strong fiduciary responsibility to get you the best deal possible. They also want to be able to tell the next tenant how well they did on the deal.
This makes any cost-benefit analysis a no-brainer. Having a good tenant representative pays. So get the best tenant representation possible.
Dallas-Fort Worth tenant representation
Choose the best tenant representation in the Dallas-Fort Worth area. Contact us today to discuss your commercial real estate needs. Make sure to connect with David Lester on LinkedIn and check out his recommendations.