Working with an exclusive tenant representative is the best way for commercial office tenants to be assured their company's mission is at the heart of a lease transaction. The best tenant representatives are more than just lease-to-lease brokers, they are ongoing real estate business advisors.
But what happens if your exclusive tenant representative also provides landlord services or joins a full-service company?
This business strategy introduces a number of serious consequences to your relationship. Namely, it raises a number of questions about how your long-term real estate strategy will be handled. Can your tenant representative assure you of business confidentiality with landlords on his or her client roster? And, will those landlord relationships influence their perspective on how to best serve tenants? In short, will there be a conflict of interest? Can you trust his/her advice?
It's important to envision your company's status within the ranks of a full-service commercial real estate company. Where would a commission-based client land amongst a list of clients that provide income every month or at least the potential for continuing income over time? Moreover, will your agent be handling a number of additional new accounts that would hamper the level of service which you deserve and should expect?
Tenant representatives at full service firms are often working with clients that have multiple sites involving in-depth lease administration and transaction oversight. How quickly then, will your phone call about an unforeseen landlord expense be returned?
Full service tenant representatives will remind clients that intangible characteristics are the most important, concepts like integrity, trust and market knowledge. To that end, if a company could work with an advisor who possesses those qualities, without the inherent risk of working with a firm that also works with landlords, would that not be the better scenario?
Your relationship with your tenant representative should be examined like any other critical business partnership: with sincerity, professionalism and an eye on your bottom line. Since real estate is such a major contributor to the performance of that bottom line, very little should be left to chance. That's why it's so crucial for your corporate real estate advisor to be your partner, and only your partner.