Why do I need a broker?
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A Tenant Broker levels the playing field
Your occupancy costs are probably your second
highest expense.
Your lease or purchase contract will likely total in
the millions of dollars.
Landlords are in the real estate business, you
aren’t.
Your broker will help provide a budget for short
and long term expenditures.
Your broker will ensure that you receive all
benefits of the current market.
The Landlord has its own broker to maximize his
position
How much time should I allocate for the process?
Be sure of your lease expiration and check to
see if your lease has any trigger dates as far a renewal/termination options.
Plan on beginning the process 18 months prior to
the date you have to make the decision.
If considering a purchase, plan on 24 months
prior to your decision making deadline
How is the broker compensated?
Traditionally, brokers are compensated by the
landlord (or seller) in commercial transactions. You should enter into an exclusive agreement
with your broker that spells out that he or she is representing your interests
only, and that he or she will look only to the landlord for all of his or her
compensation.
What are the differences in brokerage firms?
Brokerage firms vary as much as any other
professional services firms. Hiring a
broker should be a very personal decision as you are entrusting this individual
to look out for your interests on a contract that will likely be in the
millions of dollars. Modern technology
has eliminated the difference between large and small broker firms.
How long of a lease do I have to sign?
This depends on your particular objectives
If you’re trying to minimize out of pocket costs then a longer lease is advisable
If you’re trying to maximize your flexibility, then a shorter lease may be the best choice
Landlords have three components of a transaction that are most important
to them:
o Lease Term (length)
o Lease Rate/Rent
o Build Out Costs
Landlords usually achieve 2 of their 3 objectives, that is, if the Tenant wants a lower rental rate, for example, then usually a longer term and less build-out will be necessary.
