The Complete Guide to Tenant Representation
and Why you Need to Hire A Tenant Representation Broker
What is a Tenant Representation Broker?
When it comes to finding the perfect commercial real estate space for your business, you want to make sure you have someone on your team who is looking out for your best interests. That’s where Tenant Representation Brokers come in. A Tenant Representation Broker, also often shortened to “tenant rep broker,” is a real estate professional whose sole focus is representing the interests of tenants in the commercial leasing process.
Tenant Rep. Brokers help business owners and executives navigate the often complex world of commercial real estate so they can find the perfect space for their business at the best possible price. Whether you are a multi-location national brand looking for their next location, or if you are a start-up business looking for your first space, Tenant Rep. Brokers can help. From warehouse users, to retail locations, Tenant Representation Brokers are available for any and all product types.
The First Capital Property Group Tenant Rep. Broker team is experienced in small tenants to large tenants, office to industrial users, established operators to new operators. As we further dive into The Complete Guide to Tenant Representation and Why You Need to Hire One, you will explore topics such as:
- Who Should Hire Tenant Representation Brokers
- What does a Tenant Representation Broker Do
- How Tenant Representation Benefits Business Owners like You
- Are Tenant Representation Brokers Beneficial in a Renewal
- When to Start Looking for a Tenant Representation Broker
- Finding the Right Tenant Representation Broker
- The Cost of Hiring a Tenant Representation Broker
The Complete Guide to Tenant Representation and Why You Need to Hire One also dives into some of the most common terms and topics that come to light during a lease signing that you should know! These include:
- What is a Personal Guaranty of Leases
- What you need to know about Tenant Improvement Allowances
- The difference in Rentable and Useable Square Feet
The major perk of hiring a Tenant Rep. Broker is that they will walk you through every step of the process, navigating the above terms and more.
Who Should Hire Tenant Rep. Brokers?
Tenant Rep. brokers are valuable to nearly every business regardless of type, size, location, or reach.
What Does a Tenant Representation Broker Do?
A Tenant Representation Broker’s focus is to help companies, organizations, business owners, etc. navigate the leasing process from identifying their needs, finding ideal locations and site selection, to negotiating and finalizing a lease, and through lease expirations and growth. The commercial real estate (CRE) industry is a fast-changing industry with market shifts happening continuously. Tenant Rep. Brokers are experts in the CRE industry alleviating the need for companies, organization, business owners, etc. to research and learn the cur-rent market when you are ready to renew a space, find a new space, expand, etc. This saves you time and effort; a Tenant Rep. Brokers market knowledge is used throughout the entire process.
Tenant Representation Brokers help with:
- Choosing whether to stay in a current space or relocate to a new space
- Identifying your needs for a space and finding the right space to meet those needs
- Negotiating strong lease terms for your space
- Navigating the ins-and-outs of signing a lease and answer any questions
- Deciding if leasing is the right options instead of purchasing
How Tenant Rep. Benefits Owners Like You
Navigating the process of finding a space, and negotiating a lease is often challenging and time consuming; that is where hiring a Tenant Representation Broker is beneficial. There are numerous reasons why working with a tenant representative is advantageous for businesses of all sizes.
Are Tenant Rep. Brokers Beneficial in a Renewal?
When engaging a Tenant Representation Broker for the numerous reasons we have already explored, the value is clear, but does it make sense to use a Tenant Rep. Broker for a Renewal? If you are wanting to stay in your same space, exercise a renewal option in your lease or make adjustments to your current lease, a Tenant Rep. Broker is just as valuable to you! A Tenant Representation Broker will advocate on their client’s behalf throughout the lease negotiation process just the same in a renewal.
When to Start Looking for a Tenant Representation Broker
Determining when you should begin to look for a Tenant Representation Broker partially depends on your needs but in short, as soon as you are considering any change in space needs, or need new space is when you should being looking for one. The process for choosing the right Tenant Rep. Broker should not be rushed base on deadlines of a current lease, or foreseeable business needs. Every Tenant Rep. Broker is unique, and you want to ensure that you are able to choose the one that best understands your needs, and goals while having the time to dedicate to your property search.
The time needed after securing a Tenant Representation Broker is better if it is plentiful. The more time you have to explore the market’s availability, the better. Time allows for you and your Tenant Rep. Broker to identify multiple options, compare landlord offers against each other and leverage those to get the best deal points, negotiate with the landlord of the property you decide you want, and ensure that you have enough time to complete any construction or build-out needs in your new space prior to moving in.
Finding the Right Tenant Rep. Broker
Not all Tenant Representation Brokers are the same; each one has slightly different specialties and focuses. Remember those relationships we talked about being an important benefit of a Tenant Rep. Broker? It’s important to make sure you find the right Tenant Rep. Broker with the right experience, connections, company behind them and market reputation.
The best place to start is by asking for recommendations from other business owners in your industry or network. Once you have a few recommendations, schedule consultations with each of the Tenant Representation Brokers on your list so you can get to know them better and determine whether they’re a good fit for your needs.
When meeting with potential tenant representatives, be sure to ask them about these key areas:
- Their experience representing businesses like yours
- Their understanding of the local market
- Their past successes in similar lease negotiations
- Their availability —make sure they’ll be able to give your property search the attention it deserves
- The resources available to them and if they have the support of their company behind them
Finding the right Tenant Representation Broker using the above criteria will make your property search process more enjoyable and successful. The right Tenant Representation Broker will also understand that during the few months they spend working with you the important part of their role is matchmaking you with the right location, property management team, and landlord that will be your long-term home.
The Cost of Hiring a Tenant Representation Broker
Perhaps the most surprising and encouraging benefit to working with a Tenant Representation Broker – in nearly every case it costs business owners nothing! Landlords build leasing commissions into the budget for their real estate investments and are glad to pay their landlord representative and outside tenant rep. brokers.
Topics and Terms to Know
Tenant Representation Brokers will walk you through every step of finding your ideal space, to completing your lease signing; this includes ensuring that you understand everything along the way. The following Topics and Terms are good to know regardless and beneficial for you to be prepared to encounter as you navigate finding your space.