Are you looking for a place for your office or a storefront to house your business? But you’re unsure about hiring a tenant rep to handle your commercial lease? Well, we are here to resolve your confusion!
Our article will guide you in finding the best tenant broker for your company. The objective is to assist you in hiring the right person, understand his work responsibilities, the cost and benefits of utilizing a commercial tenant rep.
Before you start hunting for a tenant rep, it’s imperative to understand whether you need them for your company. You will hire a commercial tenant rep only if:
- You want a new place for your company
- Your current commercial lease is about to expire
- Your current office space doesn’t meet your business requirements and goals
- You are overwhelmed with the process of leasing a commercial space
- You are looking for leverage and assistance in renegotiating your existing lease
- You are considering buying property vs. leasing
- You are looking to sublease your space
Typically, any business can benefit from the services of a tenant representative but usually, the following companies hire a commercial rep:
- Small or large business organization
- Local, regional, national, or international firms
- Retailers, warehouses, restaurants, manufacturers, corporates, or any business that requires offices
- Private, public, government, and not-for-profit organizations
In essence, any business that requires renting, buying, or leasing a commercial space needs the assistance of a tenant representative.
Now that you’ve realized you need a tenant broker, you should start looking for one. But wait, hiring a broker means you’re handing him the keys to your livelihood. It may seem like an easy process, and you may want to hire the first tenant rep you meet during your search.
You should stop right away and check this article out! We are here to provide you with foolproof ways to hire a commercial tenant rep:
Become Knowledgeable: Since it’s your business, you’re the decision-maker. But before you cut calls, you need to learn about the various lease terms, understand the process, and know the market rate of the property type. Although your tenant broker will handle everything, it’s always better to stay knowledgeable as well.
Look for Recommendations: Your friends and social circle is the most reliable resource to suggest the best available commercial tenant reps in the marketplace. You can also check various online tenant rep directories and portals to compare their services, experiences, and proficiency. In online directories, you can also review their ratings and customer experience to ensure they are well-suited for your needs.
Conduct an Interview: once you’ve listed down a few options, it’s time to carry out cultivated interviews. This ensures that the tenant rep is not only well-versed in his profession but also understands your business, its objectives, and goals. He will be the person who will be living and breathing your business for the next few months.
You can ask questions, like:
- If they have experience of representing business similar to yours. You can ask for references and cross-check them
- You should ask key terms related to commercial leases to ensure they have the subject knowledge and are not a novice in the market.
- You can also ask them certain factors related to your preferred property type, their viability for your business model, and the lease cost
- Lastly, you may ask them how many clients they are currently handling to ensure they have the time and fortitude to represent you and your business.
Steven R. Goldstein, a seasoned tenant rep, has been assisting business owners since 1991 under the ChicagoBroker.com banner. Having the skills and expertise, he has successfully guided his clients throughout the transaction process, step-by-step. Not only will he negotiate an advantageous deal but will also help you avoid market pitfalls for lucrative commercial lease for years to come.
Once you’ve picked the right rep for your company, you will want to know the cost of his services. It is one of the most natural queries one can have when hiring someone—-but the best part is, you don’t need to spend a dime on your tenant rep.
But why would someone work for free? Well, the truth is commercial tenant representatives are paid the way commercial listing representatives are — that means, by the landlord. As a tenant, you’re the golden goose for the property owner. Thus he pays 67% of the total commission to the tenant rep and only 33% to the listing rep who did all the marketing for the property.
Hiring a tenant rep ensures that major obstacles in finding and negotiating a commercial lease are removed. But more importantly, the services of your commercial tenant rep are much more versatile and flexible. A proactive tenant rep will offer you:
- Space needs analysis for your business
- Search and compare all the available options
- Instigate a bidding war among the landlords
- Works in your best interests during lease negotiations
- Serves as a communication channel between you and your landlord
- Identify the cost-saving points
- Handle paperwork and settle disputes
Steven Goldstein and ChicagoBroker.com have been active in Chicago as an office tenant representative since 1991. Please let us know if we can be of service with any of your commercial real estate needs. We are available 24/7 to answer any questions or assist with any real estate needs.