If you’re an office tenant negotiating a lease or looking for space, you may wonder what a “tenant representative” is and whether or not you need one. Read on for answers…
A commercial tenant representative (AKA tenant rep) is a real estate professional who helps businesses find and negotiate leases for office, warehouse or other commercial space.
An independent tenant rep exclusively works for the tenant, meaning their main priority is to advocate for the tenant’s best interests during the leasing process.
They provide guidance, conduct property searches, negotiate lease terms, and handle paperwork – all with the sole aim of securing the best deal for the tenant. Their loyalty lies with the tenant, ensuring they receive fair treatment and favourable lease terms from landlords.
It’s not impossible to find office space without using a tenant rep. But it can be highly stressful, expensive, and time-consuming.
If you’ve never used a tenant rep before, here are 5 good reasons to consider partnering with one for your next lease renewal or office relocation:
1. Cost savings
Tenant reps use their market knowledge and experience to negotiate the lowest rent and best terms for your office lease.
They do this by focusing on a small selection of suitable sites and creating competition between landlords. Making landlords compete for your valuable tenancy optimises your negotiation position and usually leads to the best deal.
Tenant reps have devoted their careers to mastering lease negotiation and making the process as efficient as possible. Knowing the market inside and out, they can help you get savings and perks you didn’t even know were possible.
2. Time savings
If you’re a business owner or executive, you probably already have a lot on your plate. Negotiating a lease renewal is hugely time consuming – not to mention stressful! It’s an added burden you probably would rather do without.
When you delegate the project to a tenant rep, they do all the analysis, research, legwork and negotiation for you. You can focus on your business knowing your lease negotiations are in good hands.
3. Market coverage
A commercial real estate agent can only show you the properties in the portfolio they represent. Whereas tenant reps have access to large networks of agents, landlords, and their properties.
They can show you all properties listed from all agencies and all landlords. Using their industry connections, tenant representatives also often have access to properties that are not listed on the open market.
Not only do tenant reps have the resources to find you all the options available, but they will also take the time to cull through the list and present to you the options that best suit your needs.
4. Site selection
If you want to relocate, a tenant rep will take you through a rigorous and efficient site selection process:
- conducting a needs assessment to identify and clarify your requirements
- surveying the market to see which spaces are available
- taking you on inspection tours of potential spaces
- explaining the pros the cons of each space.
The end result is the perfect space for your company’s size, needs and budget.
5. Avoid pitfalls
A tenant rep can be a valuable asset during each step of the decision-making process when you’re comparing spaces and negotiating with a prospective landlord. The rep is your advocate, meaning you can feel confident about their advice.
Using their market knowledge, a tenant rep can tell you whether various aspects of a deal are reasonable. They can also explain elements of the contract to you and help you feel confident that you know what you’re agreeing to.
Help is at hand
If you’re looking to save money, time, and stress in your office leasing, you should consider partnering with TRS.
We’re here to assist you throughout the entire office leasing process, from the initial needs assessment and site selection to negotiations, fit-out advisory, lease expiry and beyond.
Remember, landlords have the advantage when you don’t have a tenant rep on your side.
Please contact us to find out how we can help you
