Your lease is expiring and you are focused on running your business. Real estate is one of your largest expenses. This an opportunity to improve your bottom line as well as morale. Should you renew or move?
Your first call is to your commercial real estate broker. He or she is the expert to answer your questions, save you time and money.
Why a Broker?
First, engaging a broker that represents you – the tenant – enables you to receive the best, impartial and actionable advice.
Second, a good broker will empower you, the tenant. The broker has information on each building, landlord and space in the market and uses this information to compare options. We use this to create leverage whether you renew or move.
The broker can demonstrate the costs and benefits of each space, so you can create the consensus needed to make the right decision.
Third, you get an expert to champion your cause and the landlord pays the fee!
Engaging a broker
Most people are familiar with residential real estate brokers. When a friendly residential broker shows a house to you, whether you’re aware of it or not, the broker is representing the seller. Their legal obligation is to the seller. They are not representing the “buyer.”
The big difference is that in commercial real estate, there are many companies that are “buyer” brokers where the broker represents you, the tenant. These types of brokers are known as tenant representative, or tenant rep brokers.
To hire a tenant rep broker, there is usually a one-page agreement that says:
- the broker represents the tenant and the broker’s loyalty, legal and fiduciary responsibilities are to the tenant
- the broker gets paid by the landlord
- the tenant agrees to work only with that broker
The Benefits of a Tenant Rep Broker
An experienced broker will
- save you time by not showing spaces that don’t make sense;
- negotiate the best deal for you by creating competition among various options; and
- avoid expensive and costly mistakes tenants make because they do not have the experience or knowledge of building operations, construction or lease issues that a broker deals with every day.
If your lease is expiring, your business is growing rapidly or your office rent is “too damned high,” call us. George Grace 646-312-6800 or click:
Topics: New York City, New York City’s Commercial Real Estate Market, Commercial Real Estate Broker, Commercial Real Estate Lease, Commercial Real Estate, New York office space
