If you are a building owner looking to sell or lease there are many reasons why you should hire a commercial real estate broker to list your property. The brokers that specialize in working for Building Owners and Landlords are known as Landlord Representatives. Most of their job is only on representing properties and not tenants.
As always, there are many landlords that feel they can sell or lease their properties without a professional commercial broker. The top reason is they believe going alone will save them money. This may be the case for you, though there are many beneficial reasons on hiring a Landlord Rep.
Access to Brokerage Community
Evaluate Prospective Tenants
- Optimize Space; Landlord Rep brokers have dealt with many different tenants from across multiple business sectors. With this knowledge they know the initial impression and concerns tenants have when looking at different spaces. Armed with their expertise they can assist Landlord’s in optimizing each vacancy for the best initial impression for prospective tenants. This is very useful as a Landlord has one shot to make an impression on prospects.
- Knowledge of the market (pricing); Optimizing a vacant space is critical to make the best first impression to tenants, but what is more important initially is pricing. A Landlord Rep broker has specific knowledge of the market and the comparable properties. Using their history and current data of the market Landlord Rep brokers can position a Landlord’s asset in a position to lease or sell. If a property is marketed too high, no matter what a broker does tenants will not want to visit the property. That said, I have also learned, even if a Landlord wants to, pricing a property too low will also discourage showing activity.
- Create Building Identity and spark buzz in market; A Landlord Rep will create a whole marketing strategy for their Landlord’s asset. They understand the best way to present each asset to gain the most momentum. Some of the marketing tools they will create are:
- Flyer and/or Offering Memorandum
- Space Plans
- Online Listings
Using these tools, the Landlord Rep is prepared to create a buzz in the market. This is usually done by sending out eBlasts to the brokerage community, investors and their personal built database of active tenants in the market. They can also go door-to-door in the immediate market to promote the available spaces. The Landlord Rep becomes a Landlord’s “Boots on the Ground” in-house marketing team.
- Access to the at-large brokerage community; Through a Landlord Rep’s years of experience they have built a network and database of the active brokers in the market. Using their database and contacts they will reach out to the brokerage community to highlight the benefits of a Landlord’s asset. They will make calls and send eblasts so when Tenant Rep brokers have an active client, they will be aware of the Landlord’s asset and its features.
- Experience to evaluate prospective tenants; As mentioned Landlord Rep brokers have met with many different prospective tenants over their professional career. With each interaction Landlord Rep brokers have gained a “radar’ of sorts to initially evaluate tenants. This helps minimize time wasted on prospects that are just “looking”, not in a financial position or may just be too difficult to deal with. Landlord Rep brokers focus on those prospects that have the best chance of success. As with everything, time is money, so having a Landlord Rep to sort through each prospect saves a Landlord critical time.
- Negotiation Strength; Landlord Rep brokers in Commercial Real Estate meet with every prospective tenant and their Tenant Rep at each showing. With them at each showing they gain insights of the position of each prospect. As a deal starts moving into negotiations, a Landlord Rep creates a barrier between Landlord and Tenant. This is a buffer zone which helps keep things on a business level and not turn into a personal level. Having this barrier progresses the negotiations forward. Sometimes a Landlord Rep can push when needed pushed without the Landlord being the “bad guy.” In my practice, I do not get the Landlord directly involved in the negotiations until truly needed. This is only when the Landlord can come in and complete that last sticking point.