Have the property companies hijacked tenant representation?
Commercial real estate agencies specialise in listing office space on the market on behalf of property companies and landlords, as well as purchasing property for investment and lease themselves.
A trend has emerged with these same agencies, creating divisions within their companies and labeling them “Tenant Representation”. This is potentially problematic as the very same business is employed by property companies to fill vacant space! Therefore the tenant is likely to be the one to suffer financially here as the priority for the agent is to optimise the rent from the tenant. The agent is ultimately representing the landlord… lets not forget this.
When thinking about whether you need independent representation, stop and think about the impact this could have on your savings.
While these “Tenant Representation” departments portray themselves as independent tenant advocates, be wary of this claim. As a large corporation with a conflict of interest, these commercial real estate agencies may not be able to offer the tenant the best deal as they may not search the market as thoroughly or negotiate as hard as a truly independent tenant rep.
Large agencies in Australia such as Colliers, JLL, Cushman & Wakefield and CBRE all offer these 'Tenant Rep’ services. Many of these agencies work in open partnership with Landlord, Institutions and other property companies, particularly in large premium office buildings.
When thinking about whether you need independent representation, stop and think about the impact this could have on your savings. Ask the question, if companies such as those mentioned above got tenants the best deal every time, wouldn’t property companies and landlords stop using them to list their space? Due to their expansive listings from landlords this evidently isn’t the case.
Many commercial real estate firms rely on their big name to pull tenants in, but just because they are a large corporation does not mean they can offer you greater savings, in fact it is likely to be the opposite. This is where TRS truly stand apart from the rest of the market; we stand independent from property companies, agents and landlords in market search and lease negotiations.
Do not let property companies hijack Tenant Representation – to us this service is for the tenant only, and we maintain this by never receiving money from landlords or agencies and always putting the tenant first. To find out more about TRS and how we can negotiate your next lease, contact us.