In the previous post, we discussed why you should use a tenant rep. The post posed five questions to ask yourself which will ultimately decide if using a tenant rep is right for you.
Once you have determined to use a tenant rep, you can decide whether you would like a good, or a great broker. Sure, a good tenant broker will represent you in the lease negotiating process, but a great tenant broker will:
1. Evaluate your space requirements. Oftentimes, lessees believe they require more space than necessary. Tenant representatives can analyze how much space a client actually needs based on industry, and what specific layout would be best for the company. By utilizing a smaller space, tenants pay less in rent.
2. Review all available ideal spaces. Brokers are familiar with the area and will assess which listed spaces are right for you and your company. Also brokers frequently know of spaces that have not been widely advertised or that have not yet come onto the market. Sometimes subleases, which can include furniture, can be good offers.
3. Instigate bidding wars. Once you and your tenant broker narrow your final options down, the broker can begin a bidding war among prospective landlords. The landlords all want your business. If they each understand you are looking at other properties, the landlord may lower the rent and offer other concessions. Bidding wars create the most leverage for you and your lease.
4. Negotiate the best lease terms and find hidden costs. Tenant reps know the specific terminology of a lease. Representatives will help ensure you get the best possible options, from subletting to exit strategies, as well as how to avoid hidden costs.
5. Be a buffer. No one enjoys being the “bad guy,” but your broker is here to help during the negotiating process. By having a buffer between you and the prospective landlord, once an agreement is met, you can still have a pleasant relationship.
6. Handle confusing paperwork. Professional tenant brokers will help you compare the numbers and tricky language of each lease so you do not sign something by accident.
7. Resolve disagreements. Lastly, if any arguments arise after the lease has been signed, an experienced tenant broker can confirm details of the leasing negotiation and transaction with their files.
At the end of the process, a landlord has his best interest in mind, not yours. Landlords would like you to pay a higher rent. If you come armed with an experienced tenant broker, then the broker will look out for your best interests which will produce a lower rent with greater benefits.
Be on the lookout for Part Three: Tenant Representative = Money Saved