Why You Should Use A Buyer/Tenant Representative for Your Business

Save Money
The listing agent represents the seller or landlord and will always have the seller or landlord's best interest in
mind. Not having an exclusive Buyer/Tenant Representative will make it more likely that you will pay too
much for your space or accept less advantageous terms.
A common misunderstanding is that you will get a better “deal” if there is only one broker involved. This is
not the case. Real estate fees, along with other leasing/sales costs, are calculated into the lease rates and
purchase prices. If you do not have an exclusive Buyer/Tenant Representative, the listing (landlord's/seller's)
agent will keep the entire fee. If you have an exclusive Buyer/Tenant Representative that same fee is
typically split.
There is no additional cost to have an agent looking out for your interests

Save Time
How is your time most productively spent? Doing what you do as an expert or learning the intricacies of the
commercial real estate market and looking at a lot of property that doesn't ﬁt your needs?
Landlords and sellers hire experts to advise them in marketing their properties. It can give them an edge.
You need to do the same. You can overcome this advantage by engaging the services of a Buyer/Tenant
Representative who has access to the data, the professional relationships, the tools, and most importantly
the time to ensure a successful outcome.

Avoid Mistakes
Serious mistakes can arise in leasing or buying commercial property; paying too much, leasing or
purchasing too much or too little space, being in a less-than-ideal location, not providing ﬂexibility for future
uncertainties, ﬁnding out too late that the lease or purchase agreement contains some business terms that
were not agreed to or omits some that were.
A Buyer/Tenant Representative working to protect your interests can help you avoid these pitfalls. Often
mistakes are ones of omission, not commission. The disciplined approach used by your Buyer/Tenant
Representative will help minimize mistakes of omission.

How Exclusive Buyer/Tenant Representation Works

How Exclusive Buyer/Tenant Representation Works
You hire a Buyer/Tenant Representative by entering into an “Exclusive Right to Represent” agreement, somewhat similar
to a seller's exclusive listing agreement. The agreement obligates the Representative to work diligently to assist you in
satisfying your real estate needs and to always put your interests above all others. Conversely, you are obligated to work
exclusively with your Representative.
A Buyer/Tenant Representative follows a disciplined process to insure you not only acquire the space you need, but it is
the best solution available. Here are some examples:
Deﬁnition of Requirements
Issues of space needs, best locations(s), image, amenities, future expansion, cost, and consistency with overall business
goals are addressed.
Market Study
A market evaluation is conducted to identify options for available space and current market conditions relating to asking
prices, asking rates, rent escalations, build-out allowances, parking availability and cost, common area maintenance
(CAM) charges, and the relative surplus or shortage of the desired space.

How Exclusive Buyer/Tenant Representation Works (Continued)
Evaluate & Rank Alternatives
The most valuable options are analyzed and compared based on economic and non-economic factors that affect you.
A “short list” of alternatives will be selected for further investigation and negotiation. The rest are dropped from
consideration.
Dealing with Landlords/Sellers
the Buyer/Tenant Representative negotiates with the landlords/sellers of the “short-listed” buildings to create
competition among landlords/sellers for your business. The Buyer/Tenant Representative submits letters of intent,
facilitates communications between you and the landlord/seller in negotiating lease or purchase agreement terms, and
assists with space planning and due diligence.
Implementation of the Agreement
The Buyer/Tenant Representative can assist in the oversight of the completion of tenant improvements, reviews
documents and costs, schedules progress meetings, assists in developing punch-list items and assists in coordinating the
move-in.
Project Wrap-Up
The Buyer/Tenant Representative assists the client after the move-in by preparing summaries of key dates and decision
points and evaluating the landlord's compliance with lease provisions.

Why Use Exclusive Buyer/Tenant Representation
To Renew Your Existing Lease

Why Use An Exclusive Buyer/Tenant Representative to Renew Your Lease
Even if you have a great relationship with your current landlord, always keep in mind your landlord is in the business
of maximizing profit on his property by obtaining the highest possible rents. Until you hire a Tenant Representative to
protect your interests, your landlord will consider you a “captive” tenant, unwilling to incur the cost and inconvenience
of relocating, and likely to pay above-market rates to renew your lease. By engaging a Tenant Representative, your
landlord is put on notice that you are aware of current market conditions, may consider relocation and will insist on
fair-market renewal terms.
When to Renegotiate Your Existing Lease
Most commercial leases can be renewed at any time so long as there is an opportunity for both parties to benefit. For
example, you may be willing to extend your lease term or take more space, thus offering a benefit for the landlord, in
exchange for a reduction in rent or operating expense. If you need to reduce the amount of space you use, you may
offer your landlord a term extension, a higher rental rate, or a cash payment in exchange for reducing your space

Why Use An Exclusive Buyer/Tenant Representative to Renew Your Lease
When to Begin Looking for New Space
How soon before your lease expiration you begin to look for space for your business depends on the size and
complexity of your needs. For relatively generic requirements under about 10,000 square feet six to nine months is
probably adequate. For larger spaces or more specialized requirements, twelve months is probably a minimum and
two years is not unreasonable.
The real danger is not allowing enough time to adequately explore all your options, identify alternatives, and
negotiate the most favorable terms. If your landlord senses you are under time pressure, he will likely be much more
inﬂexible in negotiating renewal rates and terms.
The Sooner You Start, The Better off You Are
The sooner you start the process and engage a Tenant Representative to assist you in managing the renewal or
relocation process, the more options you will have and the more time and money you will ultimately save. Having
adequate time to make smart decisions and negotiate the most favorable terms will pay off handsomely.

Thank You
Contact Joe Janes for more information.

Why You Should Use A Buyer/Tenant Representative for Your Business

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