People often think office space leasing is not much
different than renting a condo, apartment or house. Having leased residences in
the past, the business owner may think that doing it alone is the way to go.
This can be a huge mistake!
You are an expert on your business, but you don’t often deal
with leasing office space. Probably no more often than every three to five
years has your business grown to the point you have rented larger office space
or have decided to go for a better location. Landlords are experts on leasing
office space because they do it all the time. You need an expert in office
space leasing on your side, too. Choose a well-qualified tenant representative
to allow you an even playing field with negotiations.
Do not think that involving an office tenant representative in the
office space leasing process will cost money and result in paying more rent.
This is a complete misconception. In fact, the cost of services of a qualified
tenant representative is normally included in the asking price whether you
choose to use the services or not.
When negotiating an office space lease, an office space tenant rep will
save you money and make certain you don’t make any costly mistakes. The
confusing verbiage of the lease can easily be explained by the tenant rep of
your choice. After all, the landlord most likely has a commercial broker
listing agent to represent him or her. The landlord’s agent will try to ensure
the landlord gets the best price for the property possible. Why shouldn’t you
have a qualified tenant rep by your side as you enter into negotiations for an
Even if you already occupy a great office space, when it
comes time to renew the lease, your tenant rep can help you get the best
renewal lease possible. If you are considering vacating you current office and
moving into another location, a good tenant rep will help you locate the
perfect space and help you negotiate the new lease.
Entering into negotiations with a tenant rep will save you money
in several ways. The office space leasing process is quite complex and often
confusing. The decisions you make will impact the price you pay each month for
the space in which your business resides, resulting in an impact on your
profits. The numbers and line items in the lease can be translated by the
tenant rep into simple language you can understand, allowing you to make sound
decisions during negotiations.
The knowledge and experience of the tenant rep allows him or
her to have a grasp of current asking prices and lease incentives. With the
guidance of an expert tenant rep, you have the subtle leverage you need when
negotiating the lease and any changes you find necessary such as tenant
improvements. Also, the tenant rep will make sure you have the documentation
you need to protect yourself and your business during the duration of your
Going it alone in the office space leasing process simply
doesn’t make sense when there are qualified tenant representatives available to
help you and it won't cost you to obtain their services. There are a few questions you need to ask when choosing the right
tenant rep for your needs:. These include:
- Can you commit the time necessary to work with
me on negotiating the lease?
- Do you primarily ask as a tenant advocate as
opposed to a real estate listing agent?
- Are there any potential conflicts of interest if
we work together on this negotiation process?
- What experience do you have in negotiating
leases such as the one I am considering?
- During the last 3 years, how many tenant
representation transactions have you handled?
- What is your philosophy on office space lease
- Do you enter into an Exclusive Representation
Agreement when working with a tenant?
- How will you be paid? What commission do you
expect to earn?
- What if I am not happy with your services?
If you want to lease the perfect office space
and pay as little rent as possible while enjoying the maximum benefits and
incentives, do not attempt to negotiate without a tenant rep’s involvement. The
tenant rep’s job is to ensure your interests are protected and get you the best
possible deal. It just makes good sense to have a local commercial broker who
has an excellent reputation for helping get tenants the best possible lease
benefits to assist you with the office space leasing process. Commercial
property leases are simply not “Do It Yourself” projects; Office Finder
services are readily available to provide the expert experience you need
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Top 3 biggest mistakes office tenants make (on SlideShare.net)
Lease Negotiations , Office Leasing Tips , Office Rental , Office Space Negotiations , Tenant Representation