According to the stuffy real estate experts who sometimes write about these issues, tenant representation services help clients with things like situation analysis, option development, and project implementation. They help prospective corporate tenants access market information when negotiating leases, and act as a proxy to achieve the most equitable solution.
Which is all a very fancy way of saying not much of anything.
So let’s translate the benefits of tenant representation services into plain English.
Why are tenant representation services important? One reason: the best tenant representation services keep you from getting screwed over in real estate deals.
Simple, isn’t it?
Tenant Representation Definition: How Tenant Representation Services Work…
Let’s say your company is growing and you want to lease space in a new high-rise office development. Unfortunately, you don’t have much experience negotiating corporate real estate deals, so someone suggests hiring tenant representation services.
At this point, many business owners guard goes up. Why should I pay someone to represent me and my interests? While that’s a wise instinct, it’s not always helpful here.
That’s because unless you have extensive experience dealing with commercial real estate companies, you’re at a serious disadvantage, no matter how skilled of a business owner you are.
The landlord or owner of that high-rise office space? You can bet they have a small army of lawyers, negotiators, and sales staff conspiring to stick you with the highest contract they possibly can. That’s where tenant representation comes into play.
These services make sure that tenants have access to the same legal, negotiation, and market research resources that commercial real estate companies do. This ensures that both sides are fairly represented in high stakes real estate deals.
In short, tenant representation services keep companies like yours from getting completely railroaded by much larger commercial real estate companies.
Not only that, but the best tenant representation experts can also help with a host of other important services. They may have knowledge of other real estate properties or office space that would actually be a much better fit for your company. They can act as your proxy in these types of situations, seeking out the best possible deals for you and your company.
While most commercial real estate is made up of smaller buildings (a value less than $2.5 million or 10,000 square feet in size), tenant representation services are often the first step you take when acquiring space inside a larger commercial space.
Don’t make the mistake of trying to go it alone, or you could end up locked into a rental agreement you’ll regret for years to come.