Finding the Value in Tenant Representation
August 15, 13
If your company has decided it's time to find new office space, you're probably wondering where you will find the time to do the necessary research, much less visit dozens of potential sites around town. Unless your company already specializes in commercial real estate, you're probably not even sure about all the questions you need to ask. This is why your business needs tenant representation when seeking out new office space.
There are a number of reasons why a tenant representative is a good idea. First, it doesn't cost you anything. As is the case with a realtor's commission when you purchase a home, the cost of a tenant representative is built into the landlord's costs's you might as well make use of it!
Also, local tenant representatives know the Houston real estate scene, inside and out. In an economy that's recovering as nicely as Houston, office space is at a premium. A tenant rep's understanding of that market, experienced negotiating skills, and knowledge of available spaces (as well as those still under construction) will be key in finding you a good fit.
Tenant representatives also recognize that your time is valuable. In an initial meeting, they can develop an excellent sense of what you are looking for in terms of office space, and will conduct a needs analysis to help focus the search. They will then investigate the available options, which might include some unusual possibilities that you might not have been aware of. Tenant reps are also not afraid to engage potential landlords in a bidding war in order to maximize your negotiating position. Finally, they will also protect your needs and options, and help you avoid hidden costs, during the lease negotiation process.
It's never too early to engage in the services of a tenant representative. Even if your company is just beginning the discussion, an initial conversation with a tenant rep can help your company make the most of the search process, and vastly increase the chances of finding the perfect office space for your organization.