Opening and owning a retail or restaurant business is complicated enough: managing inventory, recruiting and training employees, marketing and customer retention all compete for your attention on a regular basis. If you are looking to purchase or lease a new space, do you have the time to fully research market offerings, zoning requirements, and file necessary government and city documents? Do you really have time or the tools to negotiate lease terms and compare market rents and demographics?
Having a dedicated and knowledgeable tenant representation real estate team looking out for your best interest will save you thousands of dollars in the long run. You’ll get the highest level of expertise in lease negotiations and reviews, site selection and market research; and not to mention, design and construction guidance and management if the team is capable. There is no charge for the Tenant. The Landlord or Seller pays the Tenant Rep. Broker fee.
Let’s look at some of the top reasons why retail and restaurant tenants, no matter their size, need to have real estate tenant representation:
New Location Assistance
- Market research: The current market is volatile, with rates and terms changing constantly, along with zoning and documentation requirements. Since a good firm is immersed in the market on a daily basis, they will keep track of current market trends and conditions and pass that knowledge on to you.
- Site research and selection: A good commercial real estate firm should leverage the latest tools, software, and industry relationships to bring you the best sites for your business needs. Having a dedicated team that utilizes proprietary software to locate and uncover all possible sites that meet your specifications is nearly impossible to do by yourself. If you were to attempt this depth of research on your own, you would be able to see only 10-20 percent of the properties available in the market place.
- Lease negotiations: Your current or prospective landlord is in the business to make money. They lease commercial real estate space for a living and typically do not have your best interests at heart. You will not get the best deal and could end up paying thousands more than what you should pay. If you have no representation or attempting to represent yourself against a landlord or a landlord’s agent, you will not come out on top. The landlord’s agent’s best interest lies with the landlord, and the landlord’s best interests lie in making a profit and keeping properties at full occupancy. Don’t let your interests get swept under the rug. A dedicated tenant representation team will ensure you get the best deal for your money when negotiating or renewing your commercial lease.
What does a Tenant Representation firm do for me?
The firm you choose for your new location will spend thousands of dollars on marketing, administration and technology. In addition to all these direct costs, their largest cost will be the time for their efforts. They will attend and conduct multiple meetings to establish the best possible location and deal for your business as well as generating reports and keeping open communication throughout the process.
Why do I need an exclusive broker?
Besides the fact that any credible real estate firm will not work without an exclusive, it is very difficult to track where an opportunity came from with multiple brokers. If you have multiple firms placing calls on your behalf, you will lose credibility in the long run. You will quickly gain the reputation of a novice who is poking around in the industry instead of a professional who is committed to executing on a new location.
An exclusive agreement will ensure you won’t take a back seat with either your landlord or your representation firm. Your concerns and needs will be a top priority with every phone call, text, or email.
Not sure if you want to lease or purchase your retail or restaurant space? A good tenant representation firm will help you decide.