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You are here: Home / Archives for tenant representation

June 10, 2022 by Peter Maclennan Leave a Comment

Six Reasons Commercial Tenant’s Need an Agent…

Tenant representation cover image with a commercial warehouse in the background by Maclennan Investment Group

Many small business owners and entrepreneurs are tempted to represent themselves when leasing property for their business. There are multiple advantages to hiring a commercial real estate broker to represent them when considering a new office, store front, or warehouse for their business in Contra Costa County.

Here are six reasons commercial tenants should choose to hire a commercial agent to represent them:

  1. The Landlord’s Agent is looking out for the …Landlord.
    • Represents the landlord’s interests
    • Seeking the highest rent for the landlord
    • May present a single property, not all that is on the market
  2. The Tenant’s Agent:
    • Represents Only the Tenant
    • Seeks the lowest rent for the best space meeting the Tenant’s needs
    • Will solicit offers from multiple landlords to expose the Tenant to the entire market.
  3. Typically, the landlord pays for the tenant’s agent. When a tenant pays “Market Rent” there is often an embedded commission for the compensation of the tenant’s agent. Do you like paying for something that you aren’t getting the benefit of using?
  4. Commercial rent comps are not easy to find. A good tenant representative will be able to help negotiate a deal that is line with other recent transactions and reflective of concessions.
  5. Negotiating Concessions. A landlord may be willing to offer free rent or tenant improvement funds for a higher rental number. A tenant agent will be able determine what concessions are appropriate.
  6. Tenant Improvements. Tenants may elect to pay lower rent and pay for tenant improvements on their own. Tenant representatives can aid in finding a contractor and architect to determine the cost of tenant improvements.

A commercial lease transaction can be challenging for business owners to do on their own. Having an experienced agent helping navigate the process can save costs, time, and frustrations.

Peter was referred to my business when we needed to move locations. As we began to work together I could tell we had made the right decision for our needs. …The office could not be better and our experience working with Peter was fantastic. When we have to move again, having Peter represent us will be the easiest choice we make!

– Chris J.

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Filed Under: Commercial Leasing, Contra Costa Real Estate, Tenant Representation Tagged With: Commercial Real Estate, Contra Costa County, leasing commercial real estate, leasing industrial real estate, tenant agent, tenant representation

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