In today’s technological age there are many apps and websites available for gathering information and searching for properties. This leads many people to take the position that they can find the right commercial space or building that they are seeking. No matter how many resources are available to people via the internet – it cannot replace the benefits gained from using an experienced Commercial Real Estate Broker to manage, negotiate and be an advocate for your commercial transaction.
There are two sides of Commercial Real Estate brokers (though many brokers can and do both sides): Tenant Representation and Landlord Representation. As with Residential there is the Selling Agent (Landlord Rep) or Buyers Agent (Tenant Rep). In this blog post, I am going to tackle the benefits of working with a Tenant Rep Commercial Broker.
A Tenant Rep broker works with Business Owners and Investors. They are their representation in the market. They handle negotiating leases as well as negotiating purchase agreements. They are the advocate against the Landlord or Seller. Now onto the Top Reasons….
Knowledge of Market
Access to Properties
- Knowledge of the market; these brokers are tapped into the market they serve. They know what properties are available, what incentives that the market is willing to bear and the market rates for each product type.
- Relationships; the brokerage community in any area is pretty small. Even here in the greater Chicago area we attend many events together and discuss each other’s business and the latest market trends. Having these relationships with other brokers helps the negotiation process throughout the transaction.
- Access to properties; if you are searching for a house there are a multitude of websites which are all fed through the multiple listing services also known as the MLS which each agent enters their properties into. For commercial real estate there is no open platform for consumers to find properties. The service where the properties are all gathered is a paid-for-service available to commercial brokers not the public. Working with a Tenant Rep broker will give you access to the entire market and not just the few.
- Saves time; You are working your business, keeping it growing, taking care of your employees and doing the day-to-day operations of your business. Working with a Tenant Rep broker saves you the time and energy of driving up and down streets, writing down phone numbers from signs and calling each property. This is what Tenant Rep brokers do for a living. They will focus their days finding the right property that fits your requirements while you continue to make your business thrive.
- Representation; one of the major reasons to hire a commercial real estate broker is for representation. Large Fortune 500 companies have a whole real estate division where they manage and handle all the negotiations and transactions of their real estate portfolio. When you hire a Tenant Rep you now have someone working for you, looking out for your best interest, advocating your strength as a future tenant/buyer and working to get you the best available market deal. All without the overhead costs of having your own in-house real estate division.
- And lastly cost; through the previous 5 reasons hopefully you can already see the cost benefit to you. But to let you know, in most cases the cost to you personally in hiring a commercial real estate Tenant Rep broker is free. As with Buyer agents in Residential the Landlord or Seller pays the professional fee to your Tenant Rep.