Finding the perfect commercial lease can be overwhelming. Tenant representation provides prospective tenants with a broker who exclusively represents their interests. Unlike traditional real estate agents who are in charge of buying or selling real estate, a tenant representative broker focuses on the needs of tenants who will be leasing the office space. They are the commercial real estate industry’s equivalent to a buyer’s broker.
A tenant rep helps a business find a commercial property, negotiate terms, and eventually lease the space. While the principles of tenant representation seem straightforward, the process can be confusing. Let’s discuss commercial tenant representation more in-depth to understand what the process will look like for you.
Why Business Owners Need a Tenant Representative
When you start your search for a commercial office lease, you will quickly realize that the market has a seemingly endless variety of options. You could spend hours driving around, looking for ‘for lease’ signs or browsing the internet for available spaces, yet still come up empty-handed.
Then, when you finally begin looking at available properties, you might not understand how to negotiate a lease that includes terms that fit your criteria and protect your interests. However, if you partner with a tenant representation broker, you will save yourself time and effort, and you’ll ensure you’re well protected.
A commercial real estate broker will work with you to understand which lease options will offer your business the most advantages. Together, you and a real estate broker specializing in tenant representation will create long-term comprehensive strategies that combine financial, business, and real estate objectives to find the perfect fit.
For example, a tenant rep broker understands how ongoing changes in commercial real estate influence space requirements and overall costs. These changes combined with an unpredictable economy, make commercial leasing a difficult pursuit. Your broker will work with you to help you make the right decision for your current and future needs.
While tenant representation varies by the brokerage firm, it usually includes a needs assessment, an in-depth comparative analysis of the current market, expert negotiation, and execution. Here is what you can expect during the tenant representation process.
What to Expect When Partnering with a Tenant Rep Broker
A Tenant Rep Will Prioritize Your Interests
When you work with a broker specializing in tenant representation, you have someone on your side throughout the entire leasing process. A qualified tenant rep will add a member to your team whose main goal is to find you a space that best aligns with your needs.
Tenant reps will also provide you with all available information and every opportunity possible to ensure that you make the right choice. They will help you identify potential pitfalls or hidden costs and map out all the advantages and disadvantages of a given space. These are key insights that are sometimes overlooked by the commercial lease owner or the owner’s broker, who represent the owner’s interest, not yours.
A Tenant Rep Will Increase Your Leasing Options
Tenant rep brokers will also present you with a variety of leasing options so that you can compare and contrast. Unlike an owner or owner’s broker, whose interest is in leasing a specific space (their space), your tenant rep will provide you with a wide selection of leases that may fit your needs. Together, you will tour different spaces and discuss which one is the best fit for you.
A Tenant Rep Will Offer Off Market Opportunities
While you might find an on-market property, the perfect off-market space could be waiting for you. Many commercial lease deals happen off market, before brokers add the property to the list of available options on the public market. If you are unrepresented during your search for a commercial lease, you might miss out on these crucial opportunities. Working with a tenant rep broker, you have your best chance of finding the perfect lease, whether it is listed or not.
A Tenant Rep Will Improve Your Leasing Terms
Anyone who has been a part of a real estate transaction knows the many challenges that come before signing on the dotted line. A tenant rep will guide you through the entire process, from negotiating terms and customizing floor plans to coordinating contractors and finalizing contracts.
Your tenant rep broker will help you negotiate rent, tenant improvement allowances, rent abatement, and more. Their experience and knowledge of the current market will ensure that you get the best deal possible on the commercial space of your dreams.
Woodley’s Tenant Rep Commercial Real Estate Services
Across Utah, Woodley Real Estate helps companies both large and small with commercial leases and purchase negotiations. Woodley’s comprehensive tenant representation services allow clients to focus on the critical work of growing their business while the team takes care of the details of their real estate needs.
Trust Woodley’s tenant rep brokers to keep your best interests at the forefront of everything they do. Get in touch with one of our commercial real estate professionals to learn more.
