Tenant representative brokers are exactly what the name entails. We represent the tenant and handle this aspect of commercial real estate leasing. Tenant representatives are similar to a buyer broker on a residential transaction in that they are vitally important for a business owner to successfully negotiate a lease. We make certain that they avoid common pitfalls as an unrepresented tenant. Typically there are zero financial benefits to the buyer or in this case the tenant for not having representation, as the fee is already negotiated with the listing broker.
A tenant representative is there to assist everyone from startup entrepreneurs to experienced business owners as well as franchisees. We assist throughout the entire leasing process. From the initial needs assessment, planning and zoning research, considering various location options, leasing vs buying, touring possible locations, site selection, lease negotiations, project management and lease execution the tenant rep is vital in all these aspects of commercial leasing.
When Tru Commercial receives a referral we start by conducting an in-depth needs assessment with the client to determine if we are a good fit to work together. During the needs assessment phase, we discuss their current real estate needs, ideal lease length, terms, goals, exposure, future growth plans, and more. A good tenant representative will help a client prioritize their needs while helping to define specific space requirements that will best suit them. This includes location, as well as other factors like budget, type of property and quality of space, the potential for growth, terms, etc.
Unlike residential MLS searches, this process is extremely time consuming and can often take 40+ hours, depending on the complexity of the client needs. It typically requires the broker to go to the city to determine zoning needs, parking ratio requirements as well as other inquiries. If it’s a franchise, then often the franchisor needs to be consulted. A tenant representation agreement is often required to be executed and before a tenant representative researches site selection. This is very similar to how a buyer broker agreement is executed. The other similarity is that the vast majority of the time the listing broker is paying all of the tenant representatives commission. This commission is based on the gross rent over the life of the lease and is negotiated with no upfront promise of cooperation made, just like we see in the MLS.
A seasoned tenant representative will maximize your client’s benefits with strong language in the proposed terms that mitigate risk while saving time and money in the long run. In addition, you can collect a referral fee that increases your net income. It’s as easy as filling out a simple form! Contact Heather@TRUcre.com for any commercial questions or send referrals to the Tru Commercial website. Agent referrals are always coded in our customized CRM with your name referenced when we view that client screen. We do this to keep our promise to ALWAYS refer your clients back to YOU when they have ANY residential needs. At Tru Commercial we believe in protecting our agents and working together for the betterment of all.
Heather Binder is an accomplished real estate professional with Tru Realty in her role as the Director of the Commerical Division. She is dedicated to providing her clients with an extraordinary real estate experience. Her expertise in working with clients made Heather a natural for her role as a certified instructor at the Arizona School of Real Estate and Business.