After all, leasing an office space or any space for your business seems relatively easy. Identify the building you like, get the information on the lease rate, decide when you can move in and then sign the landlord’s lease. Perhaps you would even be able to negotiate a better lease rate than the one advertised by the landlord and save money on rental payments. So if it’s that easy, why do we need a commercial broker?
There are a few benefits that enlisting the services of a commercial broker will add to the transaction.
- Identifying the right office
A good commercial office broker will not only take the time to understand your current and future space and location needs, but they are aware of all alternatives in the market and some of those yet to be available. Brokers with experience can provide cost savings options to reconfigure space, potentially making due with less.
- Further rent savings
Commercial brokers have a good understanding of a landlord’s costs and bottom line. They know comparable lease deals that the market is demanding, what the leasing activity is like and how to leverage tenant strengths to negotiate a better lease rate.
- Handle all lease negotiations
The future relationship between a landlord and a tenant is important and best if it is on good terms. A broker acts as an independent party and can insulate the tenant from any negative emotions that could arise during negotiations. A good broker will work to get the best deal for the tenant, knowing where it will likely end up and preserving the relationship. A broker will also simultaneously get lease proposals from multiple landlords, essentially creating a bidding war and giving the tenant options to consider.
- Review the lease document with careful attention to tenant’s rights and responsibilities
Landlords often shift maintenance responsibilities on to the tenant without the tenant even realizing it. A broker will ensure that the tenant has rights should a landlord default on various services they are responsible for and that a reasonable cure period is in place for default by either party.
- Add to tenant’s value with additional terms
Besides the rental rate and term length, there are many items that should be negotiated and can add immense value to the tenant. Some of these include tenant improvement allowances, parking, first right of refusal, renewal terms, lease assignments, expansion rights and more.
A broker devotes his time to working on real estate and leases. Business owners have their business to run and should devote their time to that business. Brokers will handle all the paperwork and negotiations and ultimately speed up the process of signing new leases.
There are various reasons to use a commercial real estate broker for your lease, whether it be a new lease or a renewal, an office space, or a retail or industrial space. A broker’s service is generally at no cost to the tenant but will add value in time, money and final destination of the business.