Each day, business owners undertake locating and negotiating commercial space on their own. Their reasons range from: I have a great relationship with my landlord to why would I involve a broker and pay more? Does this thought process apply to their legal work? Would these individuals build their facility without a contractor?
Here is the truth. Involving a tenant rep costs you nothing; in fact, having a tenant rep on your side will save you money, time and divert risk.
- Tenant advisors get paid on transactions and the landlord pays for their fee. You will not pay a cent.
- Landlords are in the real estate business; their business is to make money off of you. Tenant advisors take away that leverage from the landlord and give the control back to their client.
- Leases are complex documents that require legal review. Our experience helps shine a spotlight on risks that landlords try to hide in your lease.
Case study: My client was growing rapidly and needed a bigger space about 30 miles southwest of Chicago. I located and analyzed several options based on cost, location and specifications. Next, I created a bidding war amongst the landlords for my client’s business.
The facility that my client decided on is a 40,000 SF facility that had a gross asking rate of $6/SF.
How I saved my client money: We negotiated this rate down to a gross rate of $2.85/SF. My client saved 52.5% off the listing price! My client also received free carpet in the office and 2 months of free rent!
How I saved my client time: I found the location, I toured the location, I analyzed the location, I negotiated the price down on the location and I prepared the lease evaluation on the location. I saved my client weeks of his time.
How I saved my client risk: The landlord’s lease required that my client pay for the replacement of the HVAC units and the parking lot if they were to become broken or cracked, respectively. These issues, along with tens of other issues were taken out of the lease; therefore, these risks were diverted back to the landlord.