The question on every business owner’s mind when it comes time to buy or lease an office: Should I work with a tenant rep broker? Our answer to that question is: What is your time worth to you? At first it may seem like the easier and cheaper option to go it alone when searching for that perfect office space or deciding if you should renew a lease. You think you will get a discount on the rent or purchase price if you don’t have an agent representing your side of the transaction, but there may be more to the equation than you realize.
- Brokerage fees are already built into the cost of leasing/buying an office.
Landlords expect that you are going to use a broker, so they build that cost into their rental rates. This means whether you hire a broker or not, you are paying for one. So why not hire a broker that is going to make sure you get great terms and conditions when it comes to things like Tenant Improvement Allowances and Rent Abatement? Not to mention a long list of other concessions that you may not even know are available.
- Available commercial properties are not as easy to find as residential.
We spend thousands of dollars per year, per agent, to have the best national commercial real estate data money can buy. Could the free or low-cost service you are using really be the same? Not even close. We have access to listings that you won’t find anywhere else on the web.
- The whole process may take up more of your work day than you realize.
What part of your day are you going to spend searching for new office space? Squeeze it in between seeing clients? On your lunch break? Early in the morning before you come into the office? Late at night when you leave the office? None of these time slots are ideal or long enough to thoughtfully make an excellent decision. You will feel rushed and harried.
Aside from touring the offices to see size and quality, should you really be spending your time on this? Let’s consider what your time is worth.
It routinely takes us about 75 to 100 work hours spread out over several months to complete a lease transaction from start to finish. This includes a property search, calls to Landlords, selection of what properties make the cut based on your specific requirement, scheduling property tours, negotiating terms with the Landlord’s Broker, side by side financial comparison of offers, and managing the negotiations of the lease documents between attorneys.
Assuming you’re a physician that is going through this process without a tenant rep broker, your best case scenario is that it takes you the same amount of time as a seasoned commercial real estate broker to complete a deal which means you’ve spent around $9,000 to find, negotiate and execute a lease for your new office.
Worst case scenario, it takes you 3x as long and you’ve wasted $27,000 and still may not be getting the best rates available to you.
EVEN WORSE case scenario, you’ve missed out on that fishing trip with your friends or the winning goal at your kid’s soccer game. Wouldn’t you rather be spending your time generating revenue for your company or enjoying your free time?
Why not spend an hour of your time to meet with one of our agents and understand all you have to gain by engaging a professional commercial real estate tenant rep broker to guide you through your next lease or purchase decision. It may turn out that the hardest decision you’ll have to make is what color carpet you want.