June 4, 2021
Looking for a commercial space to rent or purchase may seem challenging, especially if you do not understand the difference between the listing agent and the tenant broker. If you try to go through the process yourself, you will interact directly with the listing agent who is solely working on behalf of the Landlord or Seller through the process, showing you the space or building and negotiating a lease or purchase contract with the interests of the Landlord or owner in mind-in fact they have a fiduciary obligation to do so. If you engage an experienced tenant or buyer representative broker, you will have someone working solely on your behalf, protecting your interests throughout the process, typically at no out of pocket cost to you. A little more detail below:
A listing agent represents the Landlord or Seller through the entire listing and leasing/selling process. They have been directly hired by the Landlord or Seller to represent their interests and work to obtain the best possible deal on their behalf. The listing agent counts on your naivety if you go at it alone in hopes of pushing a sale through. At the end of the day, he or she tries to earn the highest income at the lowest cost to the Landlord. This practice harms the new lessee or buyer since they don’t know what concessions and rates the current market is reflecting. Working without an experienced broker on your side – even if you have been through the process before – can be like walking blindfolded, especially with the ever-changing real estate market. Real estate transactions are more complicated and are moving faster than they ever have before. As a tenant, it helps to have someone on your side.
On the other hand, a tenant/buyer representative broker has your company’s best interests in mind and this broker has a fiduciary obligation to only you. A broker will work with you to locate the best possible space that suits your company’s specifications all while keeping your company’s specific priorities top of mind. Rich Commercial Realty has over 30 years of experience serving tenants and buyers by negotiating the best terms and conditions for each space. An experienced tenant representative can help find economic savings and additional protections while helping guide you through the process from start to finish.
Best of all, tenant/buyer brokers are not paid by you the client; instead, the broker is paid his or her commission by the landlord (99.9% of the time). The commission fee is negotiated with the Landlord and the listing agent before they start marketing the property, and that fee is usually paid regardless of whether or not you have a tenant representative (bigger commission for them). The Landlord and leasing agent may not recommend hiring a broker for this reason alone, knowing that an experienced tenant rep broker will make them “sharpen their pencil.” If the listing agent insists it is not necessary to hire a tenant broker, that is a red flag. You always want someone representing your best interests during this complicated process, especially when it is no expense to you!
Call us today at (919) 821-7880 – we welcome the opportunity to advocate for you!