Tenant Rep - What You Need to Know

11
Apr

Tenant Rep - What You Need to Know

How Commercial Leasing Transactions Work

The landlord hires a broker most often called a listing broker. For clarification purposes let's call him the landlord rep.

The landlord rep markets the property on behalf of the landlord seeking good tenants.

She shows the property.

She handles lease negotiations.

She gets paid a commission by the landlord when lease is signed and/or when tenant moves in.

What Does Your Tenant Rep Do?

The tenant rep is a licensed real estate broker.

He represents you the tenant.

He shows you prospective properties after understanding your particular space needs.

When you find space space that you like, he represents you in lease negotiations.

He shares part of the landlord rep's commission when the lease is signed and/or when you move in. You, the tenant, pay nothing.

Never Sign a Commercial Lease without Tenant Representation

Here's Why

Landlord pays a commission whether the tenant has representation or not.

Without a tenant rep, you are essentially subjugating all of your interests to the landlord.

You are pitting yourself against a professional who handles leasing transactions constantly. You probably only once every five years or so. Is this in your best interest?

If you are thinking this is like the commission structure of buying a home, you are right.

The landlord has a drawer full of tenant inducements that you are not going to see unless you ask. Free rent, build-out allowances, expansion options, and much more. Would you know what to ask for?

Rent is only one cost of occupancy. You may be responsible for lots of other expenses like Common Area Maintenance, various taxes, maintenance expense escallations. Have you figured those into your projections?

For a huge majority of transactions the tenant rep saves the tenant money, money that will go to the bottom line every month of the lease term.

Don't go to the table without a tenant rep on your side of the table.

Here is a more in depth article on Tenant Representation.

 

 

Client Testimonials

My company is new and growing fast. We need more space. I thought it would be easy. Look at LoopNet, check out a few locations and sign up.

I wish.

LoopNet is full of jargon and misdirection. You find listings that are no longer available. ("Oh, we just leased that. But I have another space just like it that I can show you.") Bait and switch BS.

After following leads around in circles, I was super frustrated with the process and getting closer to a space crises at the same time. I clicked Peter's site in Google. I really wish I'd done that in the beginning.

Honestly, I have been in business for my entire adult, but I'd never heard of a tenant rep, someone who specializes in helping commercial tenants like me find and lease space. It is an incredibly valuable service. Just knowing about it is worth a semester in business school.

Peter showed some great properties. He listened, came to understand my company and showed space that was relevant and possible. Each new space inspired me to look more. I got new ideas.

Finally when we decided on a great location in downtown St. Pete. I liked everything about it. But finding the right space was just the beginning.

My company is in the medical field and has many special requirements: unique electrical hookups, plumbing for oxigen tanks, and a one-of-a-kind floor plan.

I admit I was daunted by the lease and all the requirements of my company. But Peter stepped up and negotiated a great deal with my new landlord which included a generous build-out allowance.

There are not enough adjectives to describe how much Peter has done for my company. If you are looking to lease commercial space, do yourself a favor and call Peter. You will be real happy that you did.

Unbelievably, I paid nothing for his service. My new landlord took care of that.

Fred Palmer, CEO

Stemedix

From first meeting Peter, and throughout the office suite search process to the negotiations and execution of my office lease, Peter provided excellent communication and professional service. He took the time to really understand my office space needs and was very resourceful in providing timely, valuable information and sage advice. He helped make the whole process a pleasant and friendly one.

I appreciate everything Peter did for me and I highly recommend him to anyone searching for commercial real estate consultations and services.

Jerry Albrecht
Attorney at Law

We have known and done business with Peter for some 15 years and he has acted for our group of companies in several office, commercial and industrial leases.

He is a seasoned professional, great to work with, always on on top of whats going on in the market and acting not only as a broker but ongoing advisor.

He is a great negotiator and I always feel like we got the best deal possible when we close.

Finally he is a nice guy and like ourselves I'm sure has developed hundreds of other great relationships and friendships in the business.

Carl Dilley
President
Island Capital Management, LLC.

I have known Peter Fischbach for approximateloy 20 years both as a friend and professionally.

I have found his knowledge of Real Estate, marketing and business sense extraordinary.

He has a great knowledge of Architecture and recycling of old buildings for new uses.

I would recommend him for any professional Real Estate consultaions and related services.

Peter Goldhammer, Architect
Florida #0006567

I have known and worked with Peter for many years, and would not hesitate to recommend him for any real estate service.

Peter is very knowledgeable in all aspects of commercial real estate, but is particularly adept at negotiating leases and contracts.

Linwood Gilbert, MAI

President at Urban Realty Solutions

If you are looking to lease a commercial or business space Peter Fischbach is your man. We've worked with him for years and could not be more pleased. 

He is friendly, extremely well-versed in all of the services he offers, and has an unparalleled understanding of real estate in general and the idiosyncrasies of the local Tampa Bay market. 

The landlord might not be happy with the rent, amenities, and contract terms he will negotiate for you, but you and your company will.

Jake Braun
Marco Polo
Lead Developer
CIO