Tenant Representation
Do you Need Tenant Representation for Your New Business Site?
All too often, when it comes to commercial real estate, the landlord has the upper hand. However, tenant representation is a highly effective way to level the playing field, giving tenants an edge in finding properties and negotiating terms.
If you're looking for any kind of commercial real estate to rent, it's a very good idea to look into tenant representation. Without it, you'll be on your own to find properties and negotiate with agents who are motivated to get tenants into their client's properties. Here's what you need to know about tenant representation, what tenant representatives do, and why you may want to enlist the help of a tenant representative to help you find commercial property.
What is Tenant Representation?
In tenant representation, the commercial real estate agent represents tenants who are looking for a space. The real estate agent looks for a site, evaluates the property, conducts showings, and negotiates on behalf of the tenant to move through the lease process.
Unlike many other kinds of commercial real estate, tenant representation focuses on the needs of the tenant, rather than those of the landlord. Representatives maintain a vast number of relationships and information streams to help them seek out and secure the best possible properties for their clients, which means they often serve as a valuable resource for their clients even beyond finding and negotiating for commercial property.
What Does a Tenant Representative Do?
Tenant representatives serve a number of important functions in the services they offer their clients. Your tenant representative will start by talking to you about exactly what you need from the space. They'll ask questions you may not have thought of to narrow down exactly what kind of properties they should be seeking out for you.
Once your tenant representative knows what you need, they'll start looking for sites that are likely to work well for you. They may suggest sites that they think are in line with your needs to get a better sense of exactly what you want. They'll talk to you about how given properties may meet some of your needs while requiring a compromise in other areas.
In this way, you can gain a realistic sense of the market and how much of your wishlist you can achieve within your budget. Tenant representatives keep their thumb on the pulse of the latest market information. This enables them to find a huge range of properties and then narrow them down.
Once your tenant representative finds a property that you're interested in, they'll talk to you about the contract that's being offered and help you decide whether it's right for you. They'll tell you about places where they may be able to bargain down the price and potential pitfalls that they may see.
When you’re both agreed that the property and contract are what you want, your tenant representative will negotiate with the landlord to get you the best possible deal on the property. Even once the contract is signed and you're settling into your new space, tenant representation can be very helpful. Your tenant representative maintains a network of professionals that can help design interior spaces, do necessary repairs or construction, etc. They can help you get the space exactly how you want it to be.
Benefits of Tenant Representation
Agents who are being paid by a landlord try to sell you the sites that the landlord owns. These sites may or may not be a good match for your needs. Therefore, regardless of how helpful a commercial real estate agent may seem, the fact is that they are motivated by where their money is coming from, which is the landlord they represent.
It can be tempting to think that you'll just find a site yourself. However, it takes a lot of work to seek out different sites to look at without the help of an agent who is on your side. You may not even be aware of many of the options that only commercial real estate agents know about.
A tenant representation broker is extremely valuable because they are aware of all of the options and they're highly motivated to find the best match for you. Instead of having to seek out sites and be encouraged to buy them from each agent that represents them, you can work with one agent who will find properties and negotiate terms for you.
If you're asking yourself whether it really matters if you can find the best possible site for your business or not, think about how much a site matters. Here are just a few of the reasons that it's worth seeking out tenant services to find the best commercial real estate for your company.
- Location. Even if your business isn't open to the public, you still have employee housing and conveniences to consider. A location that is particularly well suited to the needs of your business can make a huge difference in employee satisfaction and business success.
- Cost. Perhaps the most straightforward consideration in choosing tenant representation services is the degree to which you can reduce your rent. Commercial property isn't cheap. The difference of a small percentage of increased rent can mean thousands of dollars saved or spent.The cost of tenant representation seems small compared to the amount you could save by being well-represented.
- Convenience. Finding good commercial real estate opportunities is a full-time job. It can be frustrating to keep striving to find the best place only to lose out on an opportunity because you forgot to complete paperwork or took too long taking care of other responsibilities.
- Multiple options. You may be able to find a good commercial property by yourself, but it is likely to take a lot of time and effort. You'll miss opportunities that commercial real estate agents are aware of. You probably won't be able to find as many good options as a professional would, especially if you're also trying to run your business.
- Better options. A tenant representative has listings you don't, which means that unless you have one on your side, you will be missing out. Tenant representatives have industry relationships and off-market options that renters just don't have access to.
- Be more likely to get the property you want. In a rapidly growing economy like that of Oklahoma City and its suburbs, landlords are busy. They get lots of calls, particularly on prime properties. Many landlords focus on the calls that they take most seriously. Since landlords work with local tenant representatives, they may give them precedence when they call, which means you'll be more likely to get your ideal property.
- Make sure the property is exactly what you want. You probably don't have time to go to every potential property and walk it to decide whether it meets your needs. However, your tenant representative is happy to go to a potential property to decide, in person, whether it is right for your needs.
Who Needs Tenant Representation?
A huge variety of businesses benefit from tenant representation. Whether you're just starting with a brick-and-mortar location or you've been in business for years and have multiple locations, tenant representation can help you find the best site for your next venture. Here are a few examples of circumstances in which tenant representation can help a business:
- A sewing shop and tailor who previously operated primarily online and through mail order is getting established as a brick-and-mortar business for the first time. A tenant representative finds them a highly affordable and spacious rental that doesn't have a lot of foot traffic since they already have a robust customer base from their online operations
- A successful restaurant is planning to open up a second location. They hire a tenant representative who looks at their current location and customer base and finds a site that serves as an excellent launchpad for the growing chain.
- A tech company is looking for a site with lots of amenities to attract an increasingly off-site employee base to come into the office more. The tenant representative finds a property with a gym, game room, and luxurious offices.
Consider Creek CRE For Tenant Representation Services
Creek CRE has extensive experience throughout OKC and its suburbs, including Edmond, Yukon, Norman, Midwest City, Moore, and Stillwater. We have a vast wealth of resources to help you find the perfect site for your business.
Creek CRE is committed to helping each client find exactly the right property for their needs. Because we do so many different kinds of commercial real estate, we are aware of properties that other real estate agents may not be.
In fact, we often know about them before they are officially on the market.If you’re looking for any kind of commercial site, no matter how big or small, call Creek CRE. We're happy to talk with you about your ideal property, budget, and the future needs of your company. We'll take all of this information into account to help you find a property you'll love.