When you’re ready to renew your office lease or look for a new one, you may be tempted to manage the market on your own. You know what you need, and, with an Internet connection, you can easily find out what’s available near you. Right?
Technically speaking, those statements are correct. However, that doesn’t mean that representing your own interests is the best way to find or negotiate a new lease. Hiring a broker to serve as your tenant representative may yield greater benefits. Consider these arguments:
“All of the available spaces are listed online. I can find the best option on my own.”
While building data is available online, a tenant representative can apply his or her market knowledge to evaluate the optimal amount of space and potential layout requirements your business will call for. Your representative can also offer insight regarding what leases are being signed and under what terms, so you’ll know how building owners operate their properties and what features may be incorporated into the deals. In the long run, using a tenant representative prevents you from wasting time evaluating properties or negotiating for a lease that doesn’t fit your needs.
“I can get a better deal if I eliminate the tenant representative fee.”
First, you should know that any such fees are usually budgeted into the rental rate by the building owner to begin with. That said, the value of a tenant representative’s services will often greatly outweigh the fees. Even in a tight leasing market, a skilled tenant representative can create leverage in your favor just by being present — landlords will know that you’re market savvy and you have someone with you who understands the nuances of the commercial leasing process. Plus, your tenant representative can help you grasp complex lease provisions so you can understand the complete financial implications behind the rental terms and negotiate for greater concessions and savings.
“I have my own personal connections, so I don’t need a tenant representative.”
Even if you have connections with a property owner or landlord, there are many more people whose interests may be involved in a lease. The process may include the building’s owner and agent, an architect or space planners, interior designers, engineers, contractors, constructions managers, property managers, office furniture vendors and lawyers. Your tenant representative serves as a single point of contact who understands the process and can provide a buffer between you and the other parties. So, when the deal is done to your satisfaction, you won’t have to worry about tense interactions as the lease goes on.
The process of securing office space for your organization can be complex and time-consuming. When you tackle it with an experienced professional like those at Intelica Commercial Real Estate, you ensure that you’ll structure a transaction that best serves your operational needs and financial objectives.