During the course of a conversation with a tenant, they asked why anyone would want to use an exclusive broker to represent them in finding and negotiating a lease.
Of course, any tenant in the market for a space has full control of the leasing or acquisition process. If a tenant goes out and talks to five different brokers, and goes to look at five different spaces with them, what they’ve essentially done is create five salesmen. Each broker will tout the space they showed and say how great it is. Their incentive is to close on the particular space they showed or lose the commission for that deal.
On the other hand, if a tenant has one broker, and that broker is showing you all the spaces, that broker is going to receive a similar compensation no matter where you, the tenant, go. The broker’s interest is to pursue your interests. You have empowered an advocate. The arrangement you’ve created, in this instance, provides the basis for your broker to give you the best possible information and allow you to make an informed decision.
I want my clients to be successful; the more successful they are, the more often they will hire us—and that is a much bigger incentive than any one particular deal. Mohr Partners is not about the deal we’re doing today, but, more importantly, about future transactions.
In the first example, the tenant is incentivizing salesmen. In the second instance, he’s empowering an advocate. And so we always urge, whether a tenant is going to hire Mohr Partners or someone else, to hire a real estate professional—because it creates the right environment for success.
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George E. Grace
G.E. Grace & Company, Inc.
232 Madison Avenue
New York, NY 10016