Real estate is one of your company’s largest expenses and when seeking out a new business space that aligns with your needs, you want to make sure that you are looking at all the best options and finding the right fit. Working with professionals to help manage all the pieces of the puzzle is what tenant representation is all about—these are licensed agents/brokers acting as fiduciaries for you, the tenant.
Your space houses your most important assets—the people who work at your company. Setting up the right work environment matters. You want to attract and retain top talent. You want to ensure that the location your employees work provides them with the tools and resources to be productive in their jobs. The right workspace can encourage innovation and collaboration—if set up well, it can also help you improve employee engagement and even reduce sick time.
It’s possible that over time, your staff has outgrown your building. Or, maybe the needs of your employees have changed and it’s time to look at a new space more conducive to their needs. It’s possible that you’re expanding and need to add another location to your already-growing business. Whatever your reason for seeking out new space, working with a broker as your tenant rep can help you through the process and ensure your needs are met along the way.
Your rep is in your corner
It’s your tenant rep’s job to get to know you and identify your business needs. From there, he or she will continuously be on the lookout for ways to review, revise and advise you through this process of finding the property that is just right for your needs.
Typical questions your tenant rep will want to know up front may include:
What are the optimal size needs for your business? If you don’t know, they can help you with this.
What are your geographical requirements? Have your needs changed over time or do you want to stay in the same general area?
Key requirements you are seeking, i.e.: access, parking, conference areas, building or development amenities, signage, specific demographic areas etc.
And, very importantly, what is your budget?
Your tenant rep will then hit the pavement often in multiple ways including online tools and driving specific geographic areas, searching for the perfect space and presenting you with options based on your needs assessment. While you don’t have to worry about doing this research—you may find the perfect spot in which case your broker can do the follow up research.
Once you find the perfect space, your tenant rep helps you by evaluating and negotiating lease options. This is where the critical work gets done. Your broker knows the market, typical rents, allowances and, just as important, what the customary responsibilities are for the landlord versus yours as the tenant. They may draft requests for proposals on your behalf to ensure you can agree on the most important terms prior to going to lease. Additionally, they will review all lease documentation and provide comments and negotiate on your behalf to ensure you have an agreement that serves your needs through the term of your lease and beyond.
Making your space your own
It may be the case where you find a space that is great for needs size-wise but that needs some adjustments to ensure the property fits your exact needs; this is where a tenant rep can help guide you to the right team for design, pre-construction and build out.
Additional benefits of tenant representation
Real estate research and negotiations can be taxing, especially when you are busy running your business. The world of commercial real estate is likely entirely different than your core business. That is why finding the right tenant rep to walk you through the process and keep your business strategy and space needs top-of-mind is such an important part of the real estate process.
When you work with a tenant rep, you’ve already saved yourself time. These professionals do the research for you and provide you with that added negotiation power. Just as you have a team internally to help you manage your business, you will have a team working on your behalf to ensure you get exactly what you need for your next lease (or purchase).
Your tenant rep will work on your behalf to make sure the properties you’re interested in are priced appropriately and that other important terms are fair as compared to the market and will be there to negotiate on your behalf. These are the professionals who know how to mitigate risk and maximize flexibility so that your next workplace move is the best match-up for your needs.
When looking for your next business space, what are you looking for to help make the process smoother? Or, if you’ve been through the process, what did you find helpful in working with a tenant rep? We’d love to hear your thoughts on our Facebook or LinkedIn pages. Feel free to share! And for more information on tenant representation, we’ve created this helpful 4-page guide. Feel free to download and share with colleagues as you work through the process.