For tenants looking for suitable commercial real estate to rent, it is vital to get the most suitable space at the price to fit your budget, and herein presents the need for hiring representation.

For landlords looking for tenants to lease their commercial real estate, they want the best tenants at the highest amount of rent with the least amount of expenses and risk possible. The landlord’s goal is to profit from leasing their commercial real estate. This article covers three key points:

• What is tenant representation?

• What is landlord representation?

• Why are representatives essential in commercial real estate?

In commercial real estate, tenant representation is the practice of a real estate broker or agent representing the interest of the tenants by assisting the tenant to locate and negotiate commercial leasing spaces.

On the other hand, landlord representation is a leasing agent who represents the interest of the owner/landlord when negotiating and leasing the commercial real estate.

As a tenant, your tenant representation broker has your interests in mind and will locate several locations of commercial real estate that are potentially suitable for your needs and budget. With their assistance, you can compare different commercial leasing spaces and their unique characteristics.

Because the tenant agent looks after your best interests, they will respect your interests when negotiating the leasing costs.  They aggressively push for leasing terms that meet your needs and not that of the landlord.

Tenant representative agents work with available listings, network with building brokers, and work across the tenant market. They have information on the maintenance of the buildings, the turnover rate of tenants, and knows who is moving out of a commercial space before it is listed.

As a landlord, your landlord representative agent (leasing agent) will search for suitable tenants for your commercial space. The leasing agent will position your real estate in the marketplace and find businesses to lease your space. Marketing and advertising your commercial property will be much easier than if you do it on your own.

The leasing agent will screen potential tenants, retain credit-worthy tenants, negotiate offers on your behalf and obtain the highest rent from potential tenants.  The leasing agent is also responsible for showing your space to potential tenants.

An experienced leasing agent will handle the negotiations of the tenant lease.  Since this is a contractual agreement, it requires experience and knowledge.  The leasing agent will collect rent, ensure your tenants follow the lease obligation, and handle cases arising from your tenants.

Your leasing agent will take on the burden of building maintenance, suggest property improvement repairs that could attract a higher caliber of tenants, and calculate the proper value and price for leasing your property.

An experienced leasing agent will provide you with financial analysis reports and facility management plans for effective leasing and property management.

Before leasing commercial space, it is essential that you hire a representative to look after your interests. Contact us today to discuss your needs!

Our track record at Pillar Real Estate Advisors speaks for itself. We consistently place tenants in a position to succeed and provide landlords with the comfort of knowing that their investment will yield the returns they seek. The perfect lease deal is most often a “win-win” for the Landlord and the Tenant. A tenant without a solid performance history and a strong balance sheet poses an undue risk for a landlord. While a landlord that mandates unnecessarily restrictive terms, or allows for unmonitored cost overruns which a tenant must absorb, is setting his tenant up for failure and will often find himself with vacancies that could have been avoided.