For the company looking to lease office space, there are generally a number of commercial brokerage firms available in any bigger city, but which one is the right one? Although many real estate companies may advertise the fact that they are larger and deal with many more clients which makes them more experienced and able, what most businesses who are looking for office space really need is a company that offers tenant representatives to help them. There is a big difference between commercial realty companies that work mainly for landlords and those that are tenant representatives companies. From a tenant’s point of view, it is better to work with a company that can provide tenant representation in order to obtain the best leasing situation.
Tenant Firms and Landlord Firms
The main goal of a commercial real estate company is to lease out all of their listings. In order to accomplish this, many broker agents work with the landlord in listing these properties, helping them find appropriate tenants. Some companies do nothing but represent landlords in this way, attempting to secure the best leases for their landlord clients.
Then there are companies who serve as tenant representatives and work on behalf of the tenant. Tenant reps help companies who are seeking office space get what they most need out of a lease, while helping to fill their brokerage firm’s available commercial listings. Tenant representatives provide an invaluable service to a business in helping them find and lease the spaces that will be most useful to them, under the best leasing conditions.
Conflict of Interest?
Based on the way in which tenant representation works, some might view this as a conflict of interest; however, it does work. A tenant representative company basically serves both sides of the lease, working towards the best leasing situation for everyone involved. This ultimately results in happier tenants, which usually means happier landlords. Still, it does require some compromise on behalf of landlords and the brokers representing them. Yet when leasing agreements are more favorable for both parties, it means a better arrangement for both the tenant and the landlord. The process of negotiating and signing leases, then making improvements, is usually a long and arduous one that may even prevent a landlord from making money on their building while these things are happening. For this reason, landlords are generally willing to work with tenant reps if it helps to decrease turnover. It becomes a win-win situation for all parties involved!
Finding the Right Commercial Realty Firm
Since not every commercial realty firm offers tenant representation, companies leasing commercial space must do their homework to find one that does. Commercial landlord firms may advertise the fact that they have many clients and can provide the best services, although they are often referring to services that are important to landlords only. This includes the ability to provide a long financial history of a property, and to also attract tenants who do not know they should even question whether there are tenant reps available to help them. By working with a commercial firm that has tenant representatives to help them successfully lease a property, the tenant has the advantage of a commercial broker who is working in their best interests; helping them find the right building and the right landlord to negotiate with.
A company seeking commercial space must work with the right brokerage firm to obtain the most beneficial result. When the time comes to look for a commercial lease, a business should find a commercial real estate firm that is also a tenant representative company. Tenant representatives work to obtain the best results for the tenant, even when employed by a listing agency that also provides services for landlords. The end result will be a lease that both parties can agree upon, without one side being more favored over the other!
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Contact Them At (214) 216-6441!