The commercial real estate industry is in a state of flux. Building occupancies and rental rates are changing rapidly. The variance between rental rates quoted by landlords and the effective rents tenants and their advisors negotiate can be dramatic. Desperate landlords are increasingly aggressive and very creative in their attempts to fill vacant space. Buildings that once competed within pennies of each other are now offering drastically different economic packages depending upon their current leasing status and capital structure.
Without an expert who follows these trends and interpret the subtleties of landlord pressure points, while possessing the experience to negotiate for appropriate tenant protections, a prospective tenant exposes themselves to unnecessary risk and costs. In order to minimize facility costs and mitigate the risks associated with leasing commercial space, businesses are seeking the services of brokerage firms and professionals that specialize in tenant representation.
Most importantly, exclusive tenant representatives serve only tenants and reject all fiduciary relationships with landlords or their lenders. Unlike full service real estate companies that attempt to represent both tenants and landlords, “Tenant Reps”, as they’re known, never subordinate your interests to those of a landlord or lender who has a financial interest in a prospective building.
If 2010 brings decisions in your business that will impact your space, you may want to consider utilizing a tenant representative to help you maximize the benefit of leasing commercial space in the most favorable tenant market in years, while helping you to navigate the potential pitfalls of today's challenging market conditions.
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