10 Reasons to Hire a Commercial Property Agent
A Tenant Rep Can Help Your Business Find and Secure the Perfect Lease
Most people understand that buying a house often requires help from a property professional with inside knowledge of the market. But when it comes to leasing a commercial space, many surprisingly go it alone.
Professional agency when finding a place for your business to grow is as important as it is when purchasing a home - if not more so. A commercial property agent dedicated to the tenant - often called a tenant representative - could influence the outlook of your business for years.
An agent who knows the type of commercial space you are looking to rent and what to keep an eye on in the lease will save you time and money in the long run. Establishing your team before you start the process will help ensure the best results.
Here are 10 reasons to hire a commercial property agent (or tenant representative) to help you find a space to lease.
Tenant Agents Represent You
When you call the number found on the advert for a commercial building, you'll be connected to a commercial property agent who is legally representing the landlord. This means that even if they represent you as well, they have the landlord's best interests at heart.
If you truly want a commercial property agent who is looking out for you and your business's interests, search for one yourself, and hire one that is looking out for you.
Agents Have Knowledge of the Commercial Property Market
Commercial property is vastly different from residential property. The needs of the buyer or tenant vary quite a bit between different markets. While a person might look for a home with a view or one that's near their workplace, an entrepreneur might be looking for a location that provides the most foot traffic or the best parking, for example.
Commercial property agents keep an eye on the market and know where to find the best applicable spots at the best deals. They also have insider knowledge about opportunities that haven't yet made it to the market.
A Rep Has Access to Other Commercial Listings
In residential property, agents can access a comprehensive database of homes listed.
The commercial space doesn't have a single, central listing platform. But the right agent can provide you with access to an entire array of proprietary databases and commercial listings.
Property Agents Have Access to a Targeted Network
Those who regularly deal in commercial property investing know each other. Because they develop professional relationships with one another, you have access not only to their immediate knowledge but to their professional network as well.
Have a question about a certain office space you heard might go up for rent? Your agent can find out. That network can also be the means of securing you an even better deal, just by association.
Reps Can Save You Time
Sure, you could go looking through Google or your local newspaper for commercial property. You could also set up a time to walk through each location, pretending to know what to look for. Or you could go to an expert.
In business, you want to monetise your available time, not waste it on things outside your expertise. Don't squander your valuable time looking for a commercial space on your own. An experienced commercial property agent can do the legwork and locate good potential properties in much less time.
They Can Also Save You Money
One of the biggest misconceptions holding business owners back from using a commercial property agent is the amount of money they believe it will cost them. In reality, though, the landlord typically earmarks a percentage of the deal value specifically for their agent and the tenant’s agent.
Additionally, using a commercial property agent also means you've got an expert negotiator at your disposal, who can save you money on your lease. They know what to ask for and when to ask for it, which is a talent mastered over years of experience in the field.
Agents Take Emotion Out of the Deal
You're passionate about your business, so emotion in decision-making processes is normal. When negotiating for space and terms, you have a lot at stake. Landlords can sense uncertainty, though, and many use it to drive up prices.
Commercial property agents neutralise that emotional aspect. They are able to calmly and rationally discuss your options without showing your hand to the landlord.
A Professional Can Gain Insight Into a Property's Past Life
Is the daycare you're looking to rent a former adult entertainment store? A rental’s history often gives it a reputation and can impact anyone who rents the building later.
Your agent should have a way of figuring out (if they don't know already) the history of the building you are looking to rent. Make sure you are comfortable with the association it brings to your business before signing a lease. You don’t want the public to avoid your company simply because of who the previous tenant was, for instance.
Agents Can Help Get You Favourable Lease Terms
No two commercial property deals are the same. But a competent agent will ask you questions about your trade cycle and other aspects of your business that could be affected by negotiable terms in a proposed lease. An agent will also ask questions that help you obtain lease terms that are favourable to your business. Most solicitors do not do this.
A great commercial property agent will also refer your business to another type of specialist if they lack the expertise in the areas where you need the most help.
Tenant Reps Can Counsel You Even After The Lease is Signed
Agents aren't legally required to maintain a connection with a tenant after the lease is signed, but many do.
Tenant reps will often stay tuned to the next steps in the process to ensure your tenant improvement allowance and build-out provisions are met and that you're happy with your space. If you're not, they'll of course want to help make things right.
Actionable Steps
- Determine your business's specific needs for commercial space.
- Research and interview potential tenant representative agents in your area.
- Choose an agent with experience in your desired property type and location.
- Clearly communicate your budget, timeline, and requirements to your chosen agent.
- Work closely with your agent throughout the search and negotiation process.
- Review all lease terms carefully with your agent before signing.
Now that you understand the benefits of working with a commercial property agent, it's time to take action. Start by browsing available commercial properties for lease to get an idea of what's on the market. Then, reach out to a qualified tenant representative to help you navigate the leasing process and secure the best possible deal for your business.
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