Tenant representatives (AKA “tenant reps”) are the secret weapon savvy business owners and executives use to get the best deals on their office leases.
Tenant reps are commercial real estate professionals that help companies get the lowest rent and most favourable lease terms on their commercial property leases.
They guide you throughout the entire leasing process, from understanding your space needs and advising you on market conditions, to coordinating inspections and managing offers and negotiations.
Here are 7 good reasons why you should use a tenant rep if you’re renewing your lease or relocating your office.
1. Insider knowledge
Tenant representatives have a deep understanding of the commercial real estate market and can provide valuable insights into current market conditions and available properties.
A tenant rep will know the current rental rates, landlords’ incentives and vacancy rates in key locations and even specific buildings. They will understand the amenities, public transport options and characteristics of different locations. They will keep up with trends in office leasing and fit-outs.
They also have inside information on lease terms and rents of past deals, landlords’ reputations, undisclosed incentives some landlords are willing to offer and unadvertised “off-market” properties.
This insider knowledge is a huge asset when it comes to locating suitable space and negotiating the best deals.
2. Access the entire market
Unlike a commercial real estate agent, a tenant rep doesn’t have a portfolio of properties they’re representing. They can show you all properties from all agencies and all landlords.
Using their industry connections, tenant representatives also have access to properties that may not be listed on the open market.
By showing you all the available options that suit your needs, tenant reps give you an advantage in finding the most suitable office space for your budget.
3. Save time & stress
Tracking down spaces to lease, researching them, talking to landlords and scheduling tours is a time-consuming process. And often, there are many rounds of negotiations during a commercial lease transaction.
A tenant representative can do all the research, legwork and negotiation for you. This saves you time, and also ensures you don’t have to worry about getting the best deal. You can continue focusing on your core business activities while your tenant representative takes care of the leasing process from start to finish.
4. Save money
Every dollar you save on your office lease goes straight to your bottom line. Here are some ways tenant reps save you money:
- They do a comprehensive space analysis to ensure you don’t lease too much office space.
- They use market research and insider information to find the most cost-effective office space options available.
- They test the market and create competitive tension between landlords.
- They use their negotiating skills to secure better rental rates, rent-free periods, and other incentives.
- They help you avoid costly mistakes by identifying hidden costs and unfavourable lease terms.
- They provide a detailed cost comparison which helps you determine if the lease is financially viable in the short and long term.
- They know what a good deal looks like because they do them every day.
5. Avoid making a mistake
Commercial leases are complex legal documents, and the devil is in the detail. Landlords can quote any number of obscure terms, and it can be hard to know how to negotiate them if you’re not a commercial real estate expert.
If overlooked, seemingly insignificant lease terms can become a major headache – and a major expense – at a later date.
Tenant reps understand all the complexities and pitfalls of commercial leases. They will go over the lease terms line by line, and take care of all the details to protect you from a costly surprise.
They can explain all elements of the lease to you and help you feel confident that you know what you’re agreeing to.
6. Conflict-free advice
Commercial real estate agents are usually informative and polite. They might seem keen to “help you out”. But the truth is, they are never on your side. Their goal is to get the highest rent and best terms for the landlord. There is a clear conflict of interest with what you want and what the agent is trying to achieve.
On the other hand, an independent tenant representative works for you and ONLY you. They won’t withhold any information that may benefit you or reveal any information that may harm you. They can give you an objective evaluation because they have no interest in promoting one building over another.
All this means you can feel confident about their advice. You’ll have the peace of mind that your tenant rep always serves your best interests.
But beware – not all tenant reps are the same. A tenant rep who works for one of the large commercial real estate companies is not an independent tenant rep. Why? Because these companies’ main business is representing landlords. The potential for conflicts of interest is huge!
7. Level the playing field with landlords
It can be daunting negotiating with experienced commercial property owners and real estate agents. Most business owners and executives are not commercial real estate experts. They might negotiate a lease once every 5 years, but a landlord typically does multiple negotiations every year.
A tenant rep helps you level the playing field. When you hire a tenant rep, it shows your landlord that you’re serious about pursuing the best office space option on the market. You have someone in your corner with the right expertise, current market data and excellent negotiation skills.
Your rep can use market research and insider knowledge to get you a better deal that can substantially improve your bottom line.
Let TRS help you
If you do decide to work with a tenant rep for your next lease negotiation, please consider TRS.
As Australia’s leading tenant advisers, TRS provides independent and expert advice. Since 2001, we’ve helped plan and negotiate thousands of office lease renewals and relocations for companies of all kinds and sizes.
Not only will we do 90% of the legwork for you, but we’ll also negotiate the lowest rent and most favourable lease terms on your behalf.
To find out how TRS can help you get the best deal on your next office lease, please contact us
