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"Broker - Agent Magazine" by Gregory P. Schenk, SIOR
- Article Reprint July 1997 |
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What is Tenant
Representation? |
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How are Tenant
Representatives compensated? |
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Why become a
Tenant Representative? |
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Why it is in
the buyer's (tenant's) best interest to retain a broker
who specializes in Tenant Representation? |
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As agents, we are all aware of the law requiring real
estate professionals to disclose to buyers and sellers,
who the real estate broker and their agent is representing
in a transaction. We are also familiar with the agency
disclosure form which has a place to check indicating
whether an agent of a broker is representing the interests
of the seller (landlord), the buyer (tenant), or both the
seller and the buyer. Both parties sign this form and this
makes it very clear, to all parties, who is representing
whom in a transaction.
Click here to
read the full article. |
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What is Tenant
Representation? |
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Tenant Representation is when
a real estate agent represents the interests of a buyer
(tenant) in his search for a site or building. Along with
the agency disclosure form, most companies use an
exclusive representation letter to show agents and owners
of properties that, indeed, the agent represents the buyer
(tenant), how the tenant's agent will be compensated and
the duration of the agency contract.
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How are
Tenant Representatives compensated? |
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It is stated clearly in the Tenant Representative
agreement letter that the sellers (landlords) of the
property compensate the agent in the manner consistent
with that particular market. The Tenant Representative or
"Tenant Rep" broker splits the leasing or sales commission
with the owner's listing agent. A flat fee or hourly
consulting rate is becoming more common and accepted
around the country.
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The fee is paid to the listing
agent or the developer regardless of whether the buyer or
tenant uses a real estate agent. The buyer (tenant) pays
no direct fees in a transaction. In some instances,
companies would rather compensate the agent directly by
fee and/or bonus depending on the nature of the
assignment.
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Why become
a Tenant Representative? |
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 Tenant
Reps become a part of the client team with a space
planner/architect, real estate attorney and other
specialists as needed, e.g., phone, furniture, computers,
attorneys, accountants, contractors, movers, telephones
and cabling , etc. The Tenant Representative is the leader
of the whole process who first analyzes the tenant's
situation, his short and long term goals, and listens to
their problems and concerns, some of which many tenants
don't readily disclose. The rep provides a market analysis
and guides the tenant through the process, along with the
various team members, to accomplish the goal whether it be
a lease renewal, relocation or build-to-suit. This is all
part of the challenge that awaits anyone who wants to be
an advisor to a company. It is the ultimate in assisting a
company get from point A to point B. A strong level of
trust and relationship is formed and many great memories,
assignments and/or referrals can result from a job well
done.
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This is why it
is in the buyer's (tenant's) best interest to retain a
broker who specializes in Tenant Representation:
- One who knows the
specific market conditions inside and out.
- One who can locate a
suitable location based upon the client's parameters.
- One who can negotiate
the lease or purchase in the client's best interest,
using his knowledge of the marketplace (including
concessions, i.e., free rent, tenant improvement
allowances, historical deals in the market, moving
allowances, capping building operating expenses, etc.)
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When the client does this,
you've assured yourself or your client of saving your firm
valuable time and money, and giving yourself the peace of
mind that comes with it. In essence, the Tenant
Representative becomes an asset for the tenant, a "right
arm" of the decision maker, at no additional direct cost
to the tenant.
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Get Started Today |
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If
you'd like to learn more about Tenant Representation with
The Schenk Companies "Competitive Edge Seminars,"
email us.
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Click Here to Sign up now
for a seminar
OR Call 614-496-2715 to register. |
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Corporate
Services representation gives the agent the proper
foundation for representing local and national companies,
and then Multi Market representation goes further into
representing these companies across the country. |
