Imagine for a second that an NFL team has an offensive coordinator who is also the defensive coordinator for the opposing team. That is essentially what companies do when they hire firms that represent landlords as well as tenants. In any business, there are always key differentiators that separate one from the other. When choosing a representative to work with you on upcoming commercial real estate needs, whether it be lease renewal/renegotiation, relocation, or subleasing, it is very important to understand the key differences between the two business models of representation in commercial real estate. Let’s dive into it!
What does a landlord rep do?
A landlord representative works directly with the landlord and manages all their listings. They have an obligation to the landlord to get the highest rent possible with the least amount of risk and expense on every lease transaction. Time and time again, landlords’ reps will come up to your space and tell you we can give you a great deal and save you money by not using representation. That’s like not hiring an attorney because the other party’s attorney told you that you don’t need one.
If we take a step back, a listing brokers’ sole fiduciary responsibility is to their client, the landlord. By not using representation, the listing broker essentially gets double the commission on that deal, while counting on the fact that you lack the commercial real estate knowledge to obtain an aggressive market deal.
In any of these large publicly traded real estate investment trusts (REITS), their solely transactional based with their only concern being money. The goal is to get one deal done ASAP so they can move onto the next. Money is always their main priority.
When a broker negotiates a landlord-friendly deal, they’re essentially auditioning for that landlord to show them that they can best represent their building (that is, if they don’t already).
These landlord reps have hundreds of deals going on at once, so where do you think your deal will fall in the hierarchy? They are juggling hundreds of landlord clients and tenants’ requirements. If a landlord rep can find a way to make you pay more so that they can get a few extra bucks, they will.
What do tenant representatives do?
A tenant representative (tenant rep) represents only the best interests of tenants (including business owners and companies) when it comes to leasing or buying commercial space.
The services we offer are FREE! Essentially, by not using representation, you are still paying the same fee (because the landlord’s brokers fee will increase), which has already been factored into the rental rate.
As tenant representatives, we work directly for our client. We do not have any listings with landlords, and we don’t push you towards buildings that we represent. We do not care where our clients go; if they're happy with the deal, we are happy!
Landlord reps are juggling hundreds of landlord and tenant requirements, but at a full-service tenant rep firm, we do not have to waste time working with landlords and managing properties, so our time and focus is exclusively on you — the tenant.
At Webster Realty Advisors, not only do we save our clients a significant amount of time, money, and energy, but we also make sure our clients have all the information they need to make a decision that won’t hinder the growth of their business.
Regarding the hierarchy, if you’re a 10K SF client, you’re certainly not going to get the personalized service each client deserves, while they focus on the upper echelon of deals.
It goes without saying that we help not only negotiate the deal, but make sure each client, regardless of the size is protected in the infinite array of LOI and lease language.
We are a full-service tenant rep firm, so we don’t disappear the second a deal has been signed. We are there every step of the way to ensure a smooth transition. If a client is moving, we provide them with an array of trusted vendors and resources including space planning, furniture vendors, Data/IT, drive time analysis, state of the art technology, and more.
Leveling the playing field.
How can your broker have your best interests at heart when they work for your landlord, too? As tenant representatives, we’re in the business of building long- term relationships with clients. We don’t have that large brand name to fall back on, so we prove our worth by going above and beyond to leave our customers satisfied with the job we did, not by the name on the door.
WRA can do everything the large downtown firms can do, from a technology standpoint as well, but with a much higher level of attention to each to detail. One thing we can promise our clients is the best personalized service in the industry.
With the effects of the pandemic and the introduction of the hybrid work model, it is a strong tenant’s market for the first time in over a decade. Landlords are going to start feeling the pain as listing brokers fail to fill vacancies. By working with a tenant rep, we’re able to take advantage of these market conditions to get our clients the most aggressive deal possible.
Whether you’re planning on renegotiating an existing lease or exploring other options don’t wait until the last minute, take advantage of this robust tenant’s market and contact us today!
Email us: Jwebster@WebsterRealtyAdvisors.com
Call us: 339-217-0143