Why hire a commercial tenant rep broker?

Photo by Elifin Realty on Unsplash

Considering the way properties typically are listed, the more appropriate question is why wouldn’t you? When a commercial property is listed with a broker, the commissions are already baked in. Therefore, if you don’t take advantage by bringing your own representation, you are essentially leaving money on the table. You are not fully taking advantage of all available resources. And when you pass on the privilege of tenant representation, that money either goes to the listing broker or stays in the landlord’s pocket.

The landlord and his or her broker are looking out for the landlord’s interests, first and foremost. When you hire your own representation, they are looking out for yours (and again, in a typical deal structure, the landlord pays for this privilege). As part of this process, your commercial tenant rep is combing their databases (some of which you do NOT of have access to); reaching out daily to other agents and property owners; and going over multiple deals at a time, leading to up-to-date knowledge of what’s being done in your geographical area. 

Photo by Scott Graham on Unsplash

And this applies to when you are renewing your lease as well. If your lease is out of options, and you are starting over in the same location, your deal should be just as competitive as any new tenant’s would be. Actually, yours should be even more competitive, because your business is the one already in the space and would be the least work for the landlord with no turnover required (assuming that the building is not being redeveloped). 

Always take advantage of your right to your OWN representation when leasing a commercial space. Come to the bargaining table with someone focused on your interests above all else.