What is a tenant representative
A tenant representative is a licensed real estate agent that specializes in representing tenant’s interest in a real estate transaction.
What can a tenant representative do for me?
A tenant representative can provide market research and market analysis, provide financial analysis and negotiate a lease in the tenant’s interest. The tenant representative can provide expert advice on the many considerations in commercial leasing. From Jay’s 1999 Houston Business Journal article Leasing broker can help tenant negotiate the best deal:
No successful business person would allow the business manager of a labor union to handle all the negotiations for a new labor contract, but many seem to feel that negotiating an office lease renewal is a relatively simple matter that they can handle without any professional guidance…What is important to a tenant is getting the most efficient space available, resulting in the maximum return on his investment. There are many factors to take into consideration, such as firm’s growth. It may require anticipating expansion and all the multitude of significant details that impact on negotiating an office lease. To do that, it is essential to have a leasing broker who is able to step back and get the big picture, not just go for the cheapest space.
Why not just use my lawyer to negotiate the lease?
The lease negotiation involves many issues that are not within a lawyer’s expertise such as market analysis, economic analysis, business planning and construction.
What are some considerations in commercial leasing?
- Percentage Rent
- Adjustments to Base Rent
- Tenant’s Personal Guarantee
- Landlord’s Lien
- Rules and Regulations
- Hazardous Materials
- Service and Utilities
- Repairs required by government
- Repairs and maintenance
- Right of entry
- Assignment and sublease
- Mechanic’s liens
- Quiet Enjoyment
- Recapture of Premises
- Indemnity and Hold Harmless
- Landlord’s liability
- Force majeure
- Tenant improvements
….and many more.
How is a tenant representative compensated? Will this cost me more?
A tenant representative typically receives a percent commission paid by the landlord, at no direct cost to the tenant. Additionally, a good tenant representative will be able to save you money through decreased rent, increased rental abatement, increased tenant improvement allowance, parking concessions, and other concessions.