Leasing Real Estate and the Pitfalls of Self-Representation:
Why you should leverage an experienced commercial real estate services provider? Every company has some form of real estate needs. Whether you lease 1,000 square feet of office space or 100,000 square feet of industrial space, at some point in time, companies many experience the complexities of finding space, negotiating and renegotiating their lease terms. If done incorrectly, this process can result in poorly negotiated leases and bring undue stress to the company, its executives and employees, and detract from client focus. There is a solution to the typical hassles that surround finding, negotiating and keeping your sanity when leasing commercial real estate.
Much like the trusted advisory of a CPA or attorney, the skill sets of an experienced commercial real estate professional can offset unnecessary burdens and make the process seamless.
Self-representation: Why does it happen?
I can do it myself and save.
Oftentimes companies either misunderstand the role or undervalue the importance of a commercial real estate broker when seeking real estate to lease. The most common misconception for companies seeking to lease new space or renegotiate their lease is that brokers are an added expense. More often than not, a tenant representation broker does not cost the tenant a penny, because, much like residential transactions, the broker splits the commission paid to the listing agent. When engaging a tenant representation broker, a tenant has a dedicated professional keeping their best interest top-of-mind without an added expense.
Ill just stay in the same space at the same price.
Convenience can be a major factor when determining whether to move your business or stay put. Companies that get along with the building ownership often think that their landlord has their best interest at heart. However, a landlords goal is to keep a building 100 percent occupied at the highest lease rate possible. Landlords also understand that those seeking renewals are prioritizing convenience over price. More often than not, self-renegotiation is not as simple and cost effective as it seems because the market conditions may have changed since the original lease date. By utilizing the skill set of a tenant representation broker, companies can leverage that brokers knowledge of the market and recently completed deals, and create a competitive marketplace to achieve the best possible lease rate. The end result is a lower overall cost for the tenant with minimal distraction from everyday business.
A commercial real estate services provider: Why should you hire one?
Experienced commercial brokers have incredible resources at their disposal. Typically, most brokerage firms utilize proven analytics and processes to provide their clients with an upper hand. Landlords and property owners will recognize that tenants using their own broker understand the market better than those without proper representation. Because of this, the negotiation process between tenants and landlords is more equally balanced, each having access to pertinent market information and data.
Also, tenants that seek representation are able to remove themselves from the negotiating trenches of typical deal making. By adding a third-party to negotiate on their behalf, tenants are able to save face if negotiations become tense, heated or go sideways.
It does not have to be tough.
By leveraging the knowledge and expertise of a commercial real estate services provider, your company can remove itself from the burdens associated with leasing and lease renewals. Look at engaging a firm such as Robert Louis Group so you can focus on what truly matters - running your business.