Q: What is a Tenant Representative?
A: A Tenant Representative is a licensed real estate professional who only represents tenants and buyers of real estate. The advantage of working with a Tenant Representative is that there are no conflicts of interest such as building listings, landlord contracts, project management interests, or property management interests. Retaining a Tenant Representative is like adding a partner devoted to your company’s success and future expansion needs. They are on your side and represent your interests only.
Q: What do Tenant Representatives Do?
A: Tenant Reps address your space needs based solely on your unique business requirements and potential future expansion. Hallmarks of service provided by Tenant Reps include:
- Working with you to target the best location, amenities, size and configuration that will meet your company’s needs, both now and in the future.
- Searching beyond the normal databases to find the best possible options that ensure the maximum number of location choices. Frequently the best space is not currently in the market and it is a Tenant Rep’s business to know of vacancies before they become generally available.
- Performing site inspections, market rate comparisons and term comparisons to ensure that you receive the best price and terms possible.
- Preparing and issuing Request for Proposals (RFPs) or issue Letters of Intent (LOIs) to all applicable Landlords once you have decided on one or more facilities. The responses are then analyzed and in-depth lease negotiations are preformed on your behalf.
- Researching the market when your lease comes up for renewal or you need to expand to determine a fair renewal rate and terms, including new Landlord upgrades and new Lease Clause protections, if necessary.
Q: Can I do it myself?
A: Generally the savings Tenant Reps like Rich Commercial Realty net for you are around 20% or 30% compared with what you might obtain on your own. It takes an average of six to nine months to handle a commercial real estate transaction, and it is to your advantage to use a professional to effectively negotiate the complex and legally-binding terms. You’ll find it is well worth the time and effort we put into the transaction and the best part is it doesn’t cost you a thing!
Q: Do Tenant Reps work with other real estate companies, too?
A: Tenant Reps routinely work with other real estate companies and property owners, many of whom are known on a first name basis. It is most common for the Tenant Rep to contact these companies on your behalf as they know what questions to ask and how to best leverage the market.
Q: What if I see a good location myself?
A: Wonderful! Simply contact your Tenant Rep who will check it out and negotiate the best terms possible for you. It is likely that the Tenant Rep is already familiar with the building and too many inquiries will only encourage Landlords to increase their rates.
Q: What will it cost?
A: Nothing! Normal site selection or acquisition tasks require no fees from you since Tenant Reps are compensated through a share of the leasing or brokerage fee that the Landlord pays. In fact, since Tenant Reps commonly obtain better terms for their clients than the clients would have obtained themselves, you will spend less time and money by working through one. Other services such as market research, consulting, lease analysis and lease termination negotiations are available and billed on an hourly or fixed-rate basis.
Q: Is it fair and legal for you to represent us and be paid by the Landlord?
A: Yes. Real Estate Commission regulations are clear that it is both legal and ethical to represent the Tenant or Buyer and be paid by the Landlord.
Q: Is an exclusive agreement necessary and in my best interest?
A: The North Carolina Real Estate Commission requires that an exclusive agreement be executed prior to a licensed broker writing a purchase or lease agreement. Also, hard working Tenant Reps contact all other commercial real estate brokers and owners on your behalf. If there are multiple brokers do the same thing, confusion results. An experienced Tenant Rep will not invest the time and resources necessary to do a superior job without your exclusive commitment.