Did you use a tenant representative office broker (“Tenant Rep”) when searching for, negotiating for or leasing office space?
Occupancy costs (rent, taxes and utilities) are typically one of the largest expenses of most companies or organizations. These are also some of the most negotiable and opportunistic costs to reduce. Are you (owners, principals, partners and executives) spending your valuable time searching for the right space and negotiating your own deals versus hiring a Tenant Rep to act on your behalf? If you’re taking the time to work on a space search or lease negotiation alone, is this the most valuable use of your time?
Tenant Reps strictly specialize in representing the best interests of tenants and not landlords. The right Tenant Rep office broker, one that is seasoned and is active in a market, can make a significant impact on a company’s bottom line and culture. Such a broker is well networked in a certain real estate community among landlord agents and knows exactly where deals are being made in the market and thus knows exactly how to leverage one property against another to drive down your occupancy costs as far as possible. The right Tenant Rep also brings connections to the ideal space planners, architects and contractors to help design the most optimal space for an organization at the most aggressive price. This allows companies to have the most attractive and comfortable space to help attract the best talent.
Tenant Reps are typically paid if a deal is consummated; a deal that is executed and makes sense to both tenant and landlord. Tenant Rep commissions are usually paid by landlords directly and such commission amounts are embedded in the rental rates paid over time by tenants; similar to buying a house. If a tenant is not happy with a deal and no deal takes place, then no commission is paid. The right Tenant Rep can save on average, four to six times the amount of their fee.