So many times in life we try to do something ourselves because we're too cheap to pay an expert. That's why the floor tile is crooked in my bathroom and the faucet at the kitchen sink is loose. Sure I can do it, but can I do it well and for good.
It's the same in business. What am I doing myself that I should be paying someone else to do? Website? Marketing? Adwords? Health benefits? Negotiating a lease?
The amazing thing is that sometimes we do it ourselves when an expert is willing to do it at no additional cost. Take a tenant representative real estate broker, for example. That's what I do for a living. A business owner or top executive can do it himself - no question about it. But he isn't in the business of real estate so he doesn't have the tools or market knowledge to manage the process and know what is or is not a good deal.
He could spend the time to get the market knowledge. He could acquire the tools and take the time to learn how to use them correctly. But what happens to his business while doing that? Does he have the time to do both? Should he? If he has the time to play real estate, shouldn't he use that time to grow his business?
If he can save enough money by doing it himself that it more than compensates for the lost income that he would have realized from focusing on his business instead, he might want to think about a career change.
The funny thing is that I don't cost my clients any additional money. Does that mean I work for free? Certainly not. I am paid, but by the landlord. At least it's the landlord that writes the check. In reality, I'm paid by the tenant indirectly because it's included in the rental rate just like the landlord's agent's fee and the landlord's return on investment for buying the property. But the landlord doesn't give the tenant the commission if a tenant rep isn't used. So it's like the tenant is paying for a service that he's not getting.
Sure, the landlord will tell the tenant that he'll get the value of the commission for not using a broker, but then was the rental rate truly at market or was it a bit higher than it needs to be?
Here's the bottom line: Use a tenant rep broker when negotiating a office lease renewal or a new lease. It saves you time and money and ensures that you have someone loyal to you negotiating for you. It gives the tenant leverage in the negotiations.
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