7 Reasons To Appoint A Tenant Rep
If you don’t have the time or experience to navigate the complexities of commercial real estate, then a Tenant Rep is the person for you!
Tenant Representation Specialists, also known as Tenant Advocates or Tenant Reps, offer independent, expert and conflict-free advice to commercial tenants. Their advice primarily focuses around searching for site(s), lease negotiation and agreement, project and portfolio management (and more).
Here are 7 reasons why “Tenant Reps” are crucial in getting you the best possible deal:
1. Some markets have shifted in favor of the landlord
Gone are the days when landlords and leasing agents were in competition for tenants and offers of 18 months of free rent and other favorable terms were not unusual.
Many markets currently have low vacancy rates (as shown in our latest commercial market snapshot). For example, the vacancy rate for Sydney CBD A-grade office space currently sits at a record low of 3.1%, while the vacancy rate for prime offices in Melbourne sits at a record low of 2.5%. In this environment, it’s more important than ever to engage the services of a professional to help you gain leverage over the landlord in lease negotiations.
2. Secure a market rental rate and the best possible lease terms
Most tenants simply don’t have the time or the knowledge to thoroughly research current market rental rates and lease terms.
Tenant Representatives do this for a living.
They also have the necessary skills to strategically negotiate a competitive commercial lease which is fair and falls in line with current market conditions. Tenant reps use factors such as location, the type of landlord, building vacancy rates, fit-out costs, incentive levels and the market outlook to secure you the best possible deal. These factors vary significantly depending on the type of commercial property being considered.
3. More opportunities for you to consider
A valuable Tenant Advocate will have the experience, knowledge and expertise to identify and qualify suitable leasing opportunities from the entire market, including off-market options that are available but not actively marketed. Commercial real estate offers many options to the astute expert.
4. “Time is Money”
This old saying certainly applies when it comes to leasing new office space.
Searching for commercial space, getting to grips with market trends and negotiating leasing agreements is complicated and often takes longer than expected. Such critical tasks can place an enormous burden on your company’s time, money and resources. Tenant Reps remove the hassle and time-wasting while applying expert knowledge to every critical task.
Tenant Reps can eliminate this stress by:
- Providing you with up-to-date market advice
- Preparing a list of suitable options for you to compare and consider
- Scheduling and conducting property inspections
- Shortlisting suitable options and submitting proposals
- Negotiating and reviewing leases
- Managing improvements and relocation projects
- Managing fit-out projects
This is how using a Tenant Rep will save you time, hassle and money. Tenant Reps always ensure that no important considerations are overlooked.
5. Reduce your risk
Just as you would hire a solicitor to deal with your legal matters and an accountant to deal with your taxes, the real estate process should be handled by professionals who are ‘on your side’.
Tenant advocates understand all the potential dangers and complexities of leasing transactions. These pitfalls could magnify if you try to navigate the lease negotiation process on your own. Engaging a tenant advocate who understands the checklist for commercial leasing agreements (and much more) is crucial to overcome these pitfalls.
A Tenant Representation Specialist takes the responsibility of managing every detail and advises clients on the lowest risk strategy to ensure that you never face unexpected and costly surprises.
6. Optimise your space
There are many ways to optimise the way you use your space. A valuable Tenant Rep will lower your average rent per square meter without compromising your business’s productivity and efficiency. They will analyse your business needs and help you to identify all layout requirements suitable to your company culture and working style.
7. No Conflict of Interest
If you’re dealing with a real estate agent or broker, remember that they work on behalf of the landlord.
A Tenant Advocate, on the other hand, works on your behalf. That means they’ll be trying to negotiate the best possible deal for you, the tenant. They will provide you with impartial and honest advice that always has your best interests in minds.
How We Can Help
Tenant CS is a tenant advisory service that caters to companies across Australia, Singapore and the greater Asia-Pacific region. We have offices at the heart of the Sydney CBD, as well as in Melbourne and Singapore.
Get in touch with our team today for expert advice with your next lease negotiation!