What is Tenant Representation?
When a commercial agent provides tenant representation services, it means the agent only represents a tenant or a buyer’s interest. So, it provides conflict-free representation. A landlord/owner agent’s job is to get the tenant/buyer to pay the most money possible because they only represent the landlord’s interest. The landlord’s agent can legally help a tenant during the deal. But, be aware that by law in the State of Michigan the landlord’s agent’s duty is to solely represent the landlord. The agent for the landlord does not need to inform the tenant of this duty.
A tenant/buyer’s agent will pull listings, show properties, prepare financial cash flows, and assist in the negotiation process for their client. Finding commercial real estate to lease can be quite challenging when done on your own. From finding the properties to placing an offer, it’s much easier if you have a tenant representative on your side. Additionally, they can save you a lot of time. This is highly valuable if you’re a business owner.
With tenant representation, the agent pulls different listings based on the client’s wants and needs. This can save a considerable amount of time for the client. Then, once the client expresses interest in a few listings, the tenant representation broker will give them a tour of the listings. They can also prepare written requests for lease, prepares financial summaries showing the costs to lease the facility, and negotiate on the tenant’s behalf.
Why Work with a Tenant Representation Broker?
Many people wonder if they can find a property to rent themselves with no assistance. While this is possible, it is not our recommendation. There are many benefits of working with someone who is experienced and specializes in tenant representation. Perhaps one of the biggest advantages of working with an agent is the benefits that come during the offer and negotiation process. There are many steps that must be taken in the process of renting a property. For one, it’s necessary to submit a letter of intent, which is where the tenants broker submits their offerings. This usually includes the rate for rent, common area maintenance charges, and other details like utilities or cleaning fees.
Additionally, a tenant representative will help you with negotiating, which can save you a great deal of money with your monthly rent. Remember the landlord or their agent and our agents at The Principle Group work in commercial real estate 365 days a year. You may only deal with this a few times in your life.
If this is your first time leasing commercial real estate, we especially recommend working with an agent. To put it frankly, commercial real estate can be incredibly confusing. This is even more so the case if you have never been involved with a property transaction before. There are many terms, steps, and laws that go into leasing commercial space. So, it’s best to have an expert on your side when finding a property to rent. And if you have used a tenant representative in the past, you’ll likely want to use them again.