Finding the ideal commercial space for your business is a crucial decision. Location is just one vital factor in the success of a business. If your company is looking to lease office, retail or industrial, you would benefit from tenant representation. Typically, there are no upfront fees for this service. Most fees are paid upfront by the landlord or their listing agents. Commercial Tenant Representation.

Tenant representation is a commercial real estate term that refers to a commercial real estate expert that works exclusively for the tenant. Generally, a real estate broker represents landlords and sellers of commercial property. A tenant rep prioritizes the tenant’s interest when negotiating a lease agreement and related matters.

Furthermore, tenant reps will work with a business to evaluate space and lease needs. This may involve evaluating its current location, researching alternative locations, and offering advice.

With Tenant Representation, you will benefit from a multitude of tools and market knowledge, including:

• Market Research | Competition Survey
• Site Tours
• Proposal Templates | RFP
• Financial Analysis
• Lease Negotiation
• Vendor Recommendations

A tenant rep has their tenant client’s best interest in every commercial real estate transaction and negotiation. A qualified Tenant Rep knows the local market, other deals in the marketplace, the landlords/owners of the property and their representatives. They can offer sound insight and advice on commercial real estate and provide market information to ensure their clients are well represented.

Here are some of the reasons why hiring a tenant rep is essential.

The most obvious benefit of utilizing a tenant rep is the absence of conflict of interest since they work exclusively for you. Other benefits of having a tenant rep by your side during lease agreements are:

• Tenant reps provide sound commercial real estate advice.
• They research market conditions and can provide vital information.
• A tenant rep can help define your needs clearly.
• Tenant representatives can provide valuable assistance during negotiations.
• They have the resources and contacts that can give you an advantage in lease negotiations.

A simple representation letter establishes “agency” for the broker to then advocate for the Tenant. In return the Tenant Rep broker typically arranges to have their compensation (commission) paid for by the Landlord or Landlord’s broker. This means there are typically no upfront fees for this service. Ideally, the Tenant engages the services of a broker anywhere from 6 to 12 mos. out from their lease expiration. When it comes to lease negotiation, time is typically on the Landlord’s side if attempting to negotiate closer to the expiration date.

RE/MAX Commercial Brokers has a unique tool called the Tenant Rep Test which evaluates how much you (the tenant) know about the various proposal terms and items to be negotiated. We can provide case studies of prior work to show how much we have been able to save select tenants over the years. If you are currently leasing or plan to lease in the near future, contact our office at 504-838-0001 for a free consultation and Tenant Rep Test.