When businesses retain a tenant representation broker, they are buying that professional’s time, knowledge, and commitment. Tenant representation brokers can play many roles throughout a transaction (tour guide, analyst, deal maker, negotiator). Whatever your broker’s role, the most effective tenant reps are those that are experienced and focused on your property type and market.
Interview at least two brokers before you hire your representation. When interviewing brokers, procure the following information:
- Scope and Size of Firm
- Focus of Firm
- Focus of Broker
- Experience of Broker (Years in CRE, Years in Specialization)
Firms should also watch out for and avoid two personality types common in the brokerage community:
The Hyper-Aggressive Broker
The aggressive broker always believes that they’ve squeezed the deal for all it’s worth, because they’ve spent months or years of your time emotionally abusing the opposition. However, this broker rarely achieves more concessions than their more professional counterparts. Instead, they usually prolong the time it takes to close and worsen the relationship between the tenant and the landlord.
The Ultra-Selective Broker
Some times, a seasoned veteran in the brokerage industry will begin to believe his own marketing materials. Although this broker is well qualified to work on your account, he thinks that he is too good to do so. This broker only works with the “elite” of an industry or a market. Your business will probably not fit his standards, and he will not dedicate his full resources to your account, if he decides to take you on as a client.
For more information on the function and utility of a tenant representation commercial real estate broker, read “Why Should I Retain a Broker to Negotiate My Office Lease?”
For more on how to relocate your office or renew your lease, read “How to Find the Right Office Location in 10 Steps” or “Ten Tips for Office Tenants in a Renewal Negotiation.”
Originally published by Troy Golden in the Oak Brook Office Report.
Photo Credit: “Searching People” by ddpavumba Source: freedigitalphotos.net