If you are not using a Tenant Rep Broker in your office leasing, renewals, or purchases you are wasting your time and money. Learn more about how this free valuable resource can help your small business.
The Landlord Agent/Broker:
The landlord agent can also be referred to as leasing agent. Landlord agents represent building owners who want to rent space in their buildings. Most landlord agents have contracts with the building owner to lease either one property or an entire portfolio whenever vacancies arise. A landlord agent responsibility is to look out for the best interest of the property owner.
The leasing market can be extremely competitive, so landlord agents should have a good idea about rental rates for comparable properties in the area. Landlord agents should also know what concessions his client is willing to make to sign a lease. Common concessions include free rent, extra parking spaces, a state-of-the-art security system or a build-out in which the lessee’s space is customized for its needs. An extensive knowledge of ongoing occupancy trends and aggressive marketing tactics help landlord agents lease space quickly.
The Tenant’s Agent/Broker:
Tenant representatives secure the best for for their clients business. Once a tenant starts to work with their agent that agent is responsible for looking out for the best interest of the tenant. A tenant representative must appreciate how much space the tenant needs, and their budget. Other key considerations a tenant’s agent should also examine are location, parking, pedestrian traffic flow, and the potential for expansion or downsizing are to a client.
Leasing terms, such as the rental rate, leasing period and penalties for ending the lease early must also be discussed, which may involve lawyers and accountants. It is also the agent’s job to find space that meets the tenant’s needs – both the current needs and perceived needs down the road when the lease is still in effect. Tenant agents work with landlord agents to to ensure that the client is able to move into the space they were promised, in the condition promised, on the day it was promised, per the lease agreement.
How Agents Get Paid:
Landlords usually pay all agent commissions. Commissions are normally 4% of the lease’s overall value, which is based on the space’s square footage, the price per square foot, and the duration of the lease. It is not common for a tenant to pay a lease commission directly out of their pocket.
The importance of a tenant rep broker cannot be understated. Call SwiftLease today at 713-623-2487 to discuss further how we can be of assistance in leasing or buying your new office space.