{"id":5856,"date":"2020-02-17T13:35:32","date_gmt":"2020-02-17T13:35:32","guid":{"rendered":"https:\/\/www.lee-associates.com\/houston-dev\/?p=5856"},"modified":"2020-08-27T17:16:44","modified_gmt":"2020-08-27T17:16:44","slug":"4-reasons-why-companies-need-to-hire-a-tenant-rep-broker-when-lease-is-up-for-renewal","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/houston\/2020\/02\/17\/4-reasons-why-companies-need-to-hire-a-tenant-rep-broker-when-lease-is-up-for-renewal\/","title":{"rendered":"4 Reasons Why Companies Need to Hire a Tenant Rep Broker When Lease is Up For Renewal"},"content":{"rendered":"

\"\"<\/p>\n

 <\/p>\n

Ross James<\/a>, Senior Director, Lee & Associates \u2013 Houston <\/em><\/p>\n

Every day we hear tenants say they recently renewed directly with the landlord; they don\u2019t need a broker because they are not moving; they handle real estate on our their own; they can get a better deal if no brokers are involved.<\/p>\n

There are many misconceptions we must overcome as tenant rep brokers to educate current clients and prospective clients about the importance of having someone on their side. As a tenant, you need a broker looking out for your best interest, especially in a competitive market like Houston.<\/p>\n

Here are several reasons why tenants should work with a tenant rep broker.<\/p>\n

Who\u2019s on your side?<\/strong><\/p>\n

The landlord and their broker are looking out for the landlord\u2019s best interest and what will benefit them financially. When your landlord or their broker contacts you about renewing, reach out to your broker, or find one who will look out for your best interest.<\/p>\n

Having a broker associated with a reputable company gives you more authority and leverage when dealing with landlords. Tenant rep brokers can help create a competitive environment regardless of your strategy. A good tenant rep broker will leverage their knowledge of the market and seek competitive alternatives to create the best possible concession and incentive packages whether you renew or move.<\/p>\n

The professional relationships your broker has cultivated can be invaluable to your company\u2019s bottom line.<\/p>\n

Save time and money <\/strong><\/p>\n

Renewal language can be cumbersome and sometimes binding. Having a broker to assist with this process can help alleviate this responsibility. It\u2019s best to engage with your broker prior to reaching your renewal notice window or deadline. In most cases, tenants can avoid the formal renewal process all together, and work out a new deal with their current landlord or pursue alternative locations.<\/p>\n

Tenant rep brokers do this day in and day out, while tenants go through the process once every three to 10 years. By letting the broker handle this, you can focus more time on your business.<\/p>\n

It\u2019s important to note, brokerage fees are built into proformas and listing agreements in advance, so the commissions are usually allocated in the deal terms whether you take advantage of tenant rep services or not.<\/p>\n

By not using a tenant rep broker, the money either winds up with the listing broker, or back in the landlord\u2019s pocket. The benefits of using a tenant rep broker almost always outweigh commissions earned.<\/p>\n

Negotiating power<\/strong><\/p>\n

Landlords tend to treat existing tenants as a captive market and don\u2019t offer the same concessions and\/or incentives as a prospect they are trying to attract to the building. This isn\u2019t fair being that the existing tenants have provided cash flow for the landlord over the previous term, not the prospects in the market.<\/p>\n

It seems in many marketplaces, new customers are held in a higher regard than existing customers. This highlights the importance of having a broker on your team to recognize this and help negotiate the best deal on your behalf.<\/p>\n

The tenant rep broker\u2019s No. 1 job is to provide assurance their client is being treated fairly in the marketplace. It\u2019s your broker\u2019s responsibility to know the market, economy and what factors should be considered and leverage that knowledge on your behalf.<\/p>\n

Access to valuable information <\/strong><\/p>\n

Due to the subscription structures of online commercial real estate databases, tenants who search independently are not likely to have access to information on 100% of available properties.<\/p>\n

Sites such as CoStar and LoopNet are costly and require long term subscriptions which is necessary for brokers, but senseless for an individual or company looking to evaluate a single transaction.<\/p>\n

When working with most brokers, you will have access to all available resources as well as off-market opportunities. Your broker is capable of sharing a complete and comprehensive survey of available properties.<\/p>\n

Your needs may change throughout the evaluation process, so having a broker to help locate and evaluate properties based on your priorities will provide assurance you thoroughly understand the market and where you stand regarding the competitive economics of the deal.<\/p>\n

In today\u2019s real estate landscape, negotiating a renewal or new lease can be very tedious and is not something a tenant should endure alone. It\u2019s a tenant rep brokers job to help clients feel confident with their decisions and guide them through the process to ensure they are getting the best possible outcome in any scenario.<\/p>\n

Lee & Associates Houston is a fully-integrated, commercial real estate company with unrivaled capabilities. Our business-minded brokers specialize in office, industrial and land real estate investments. As the fastest-growing, broker-owned firm in the nation, we support our clients\u2019 real estate needs in the local, national and international markets. <\/em>www.lee-associates.com\/houston\/<\/em><\/a><\/p>\n

Ross James<\/a> specializes in tenant\/buyer representation. James has experience in <\/em>lease and sale negotiations, commercial real estate transactions, market research, lease administration, site selection, demographics, financial analysis and possesses strong business development skills<\/em>. Contact him at 713-744-7427 or email\u00a0<\/em>rjames@lee-associates.com.<\/em><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

  Ross James, Senior Director, Lee & Associates \u2013 Houston Every day we hear tenants say they recently renewed directly with the landlord; they don\u2019t need a broker because they are not moving; they handle real estate on our their own; they can get a better deal if no brokers are involved. There are many misconceptions we must overcome as tenant rep brokers to educate current clients and prospective clients about the importance of having…<\/p>\n","protected":false},"author":38,"featured_media":5859,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[676,214,213,18,22,137,276,668,595,635,20,272,210,594,68,99,25,26,69,679,675,514,2228,212,249,674,467,67,593],"class_list":["post-5856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-agent","tag-broker","tag-ccim","tag-commercial-real-estate","tag-cre","tag-cre-houston","tag-distribution","tag-expansion","tag-flex","tag-houstons-top-brokerage-firm","tag-industrial","tag-investment","tag-land","tag-landlord-rep","tag-landlord-representation","tag-lease","tag-lee-associates","tag-lee-associates-houston","tag-office","tag-property","tag-purchased","tag-retail","tag-ross-james","tag-sior","tag-sold","tag-subleased","tag-tenant-rep","tag-tenant-representation","tag-top-brokerage-firm"],"yoast_head":"\n4 Reasons Why Companies Need to Hire a Tenant Rep Broker When Lease is Up For Renewal - Lee & Associates | Houston<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lee-associates.com\/houston\/2020\/02\/17\/4-reasons-why-companies-need-to-hire-a-tenant-rep-broker-when-lease-is-up-for-renewal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"4 Reasons Why Companies Need to Hire a Tenant Rep Broker When Lease is Up For Renewal\" \/>\n<meta property=\"og:description\" content=\"  Ross James, Senior Director, Lee & Associates \u2013 Houston Every day we hear tenants say they recently renewed directly with the landlord; they don\u2019t need a broker because they are not moving; they handle real estate on our their own; they can get a better deal if no brokers are involved. 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