Landlords will benefit by knowing some of what to expect when a prospective tenant has professional representation or consultants.
One of the greatest values a tenant representation broker can provide to his client is advice during the lease negotiation with a landlord. A professional landlord negotiates leases every day, with the help of a leasing broker and an attorney. The tenant, who rarely participates in the market, should even the playing field by enlisting the services of his own advisers. Remember, hiring a tenant representative broker doesn't cost you money, but it can save you money.
Below are best practice guidelines for commercial real estate lease negotiations. Please consider these tactics early in your space search process.
1. Develop Realistic Alternatives to Create a Competitive Environment
Read the whole article: Chicago Commercial Real Estate Review: Commercial Real Estate Lease Negotiation Tips.
If handled correctly, it certainly can be a win-win situation. Landlords and their managers should not automatically shy away from dealing with represented tenants. A well-represented tenant who knows he or she or they weren't dragged over the coals during the leasing process, who are dealing with a landlord/leasing agent who acted equally professionally throughout the process could very well turn out to be a great tenant who will recommend the landlord's properties to other potential, high-caliber tenants.
If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.
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Note: This blog does not provide legal, financial, or accounting advice. Seek professional counsel.
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