A Tenant broker is a valuable resource that gives their client important information and facts. This gives the clients knowledge to position their firm to make the best possible real estate decisions.
Landlord’s hire a professional to give them market advice and to position their properties for the highest value. Why wouldn’t a tenant hire a tenant broker to give them the same advantage?
There is no cookie cutter approach to the successful negation of an office lease. Yes there are similarities in every transaction but there are also many different variations. Every landlord is different and the same is for the tenant. Because of personal preferences each lease will have unique variations. Therefor it is to the tenant’s advantage to have an expert on their side that understands these nuances to avoid lease killing quagmires.
The temptation is to do the work on your own. Even worse to yet information from a friend. I recently had one of my clients tell me that his patient just completed a lease. He said that the landlord gave his patient $75 in a construction allowance a few weeks ago. Now the construction allowance is $45. I am looking forward to speaking with his friend to see where the real construction allowance number is on the lease. Many times people brag about the great deal they got with complete abandonment of the economic insanity of what they are stating.
A tenant broker will give their client the facts. They will not give them impressive numbers that are bogus. How difficult is it for my client to come to terms with market improvement allowance of $30 – $35 when he was told a story. I don’t want to insinuate that his patient is a lier but he certainly overstated the facts. They will also be equipped to give the client current market data information.
A mother benefit the tenant broker brings to their client is knowledge about landlords and other brokers Like every industry their are people that are trustworthy and people to look out for. Commercial real estate is the same. Isn’t it better to know who you are negotiating with before the process begins? This valuable knowledge will save a tenant hours of frustrations.
Tenant Broker Agency Relationship
Every client is always concerned about how a tenant broker is paid. Every landlord’s agent has a commission agreement with them. The landlord’s agent generally will split their fee with the tenant’s broker. The important distinction is to understand that a tenant only has a broker if they sign a representation agreement with the tenant broker. If they don’t he tenant really doesn’t have a broker. In Texas the broker would be considered a sub-agent of the landlord’s broker unless the broker has a representation agreement signed with the broker.