This post originally appeared on tBL member Lynn Drake's blog Compass-Commercial Blog | Expert Commercial Leasing Advice and is republished with permission. Find out how to syndicate your content with theBrokerList.
Is your “tenant representation firm” truly representing all of your interests?
One thing that really nags at me is the firms out there who claim they’re representing your best interests, when really; they’re doing the opposite. Many firms out there are simply project managers and construction companies in disguise—not truly tenant representatives. Confused? Here’s how this works: you’re looking for space, and you find a supposedly “good” tenant representative. They do a great job with your landlord, and all seems to be going well. Halfway through the negotiation, however, they tell you they can do a better job with the construction with the landlord.
In other words, they want to bid out the construction—because that’s really where their money is made. Maybe they’ll tell you your project is so big that you need a project manager to oversee the process. And wouldn’t you know, they just happen to have someone on staff that can assist you with that! Usually, these firms charge more than independent firms to do that sort of work – but at this point, you’re already buds with your provider, so you’re likely to give him the business and not worry about the extra cash overlay.
At Compass Commercial, we know there are times when you need an outside bid for construction or a project manager. There’s a right time and place for everything! How we tend to handle these situations is to get quotes from 2 or 3 different firms, review them to make sure we’re comparing apples to apples, and then allow the client to select the firm they’d like to work with.
Doing it this way (comparing a couple of firms’ quotes) is the only way to ensure you’re getting the best possible price on your space, as well as on the management of the construction and/or relocation. After all, our goal is simple: to save your company as much money as possible.