Tenant Representation

Why use a ‘Tenant Representative’?

For the same reasons we outsource our taxes to accountants and legal questions to attorneys…these professionals have knowledge and experience which saves us time, money and aggravation.

It makes good business sense to outsource your real estate to an expert. I will solve your space problems efficiently and economically. I am your advocate and protect your interests.

The ‘deal’ is in the details.

Just as in accounting and law, commercial real estate transactions are made up of many seemingly small, but interrelated details.

This is especially true of commercial lease transactions, where the ‘effective’ rate a tenant pays is comprised of the ‘contract’ rate less a myriad of offsetting reductions (i.e., ‘concessions’ such as a period of full or partially abated rent, landlord provided tenant improvement allowance, fixturization period, reduced charges for covered parking, moving allowance, and many others.)

The failure to recognize and negotiate any of these concessions can, over the life of a typical lease, cost a business thousands of dollars in excess rent.

Remember, once your lease terms and conditions have been negotiated and the lease is signed, you must live with whatever is contained within the ‘four corners’ of the document.

Do not make the mistake of trusting these negotiations to well-meaning, but inexperienced staff members or brokers who primarily make their living representing landlords.

The difference between being treated as a ‘Client’ or as a ‘Customer’ is thousands of dollars.
A ‘Client’ is owed the highest degree of confidentiality. A ‘Customer’, on the other hand, merely needs to be treated ‘fairly’.

To me, you are a valued CLIENT. Your goals are to lease suitable property for the least amount possible and under the most favorable terms and conditions to your business.

As your representative, it is my job to ensure that the landlords remain unaware of your businesses circumstances and the other leasing opportunities available to you. I protect your interests by insulating you from the landlord and his/her property managers, agents and brokers.

To the landlord, you are a merely a CUSTOMER. The landlords’ goals are to lease property for the greatest amount possible under terms and conditions most favorable to the landlord.

Landlords hire property managers and real estate agents, referred to as ‘brokers’, to insulate them from tenants and increase the value of their properties. As ‘de facto’ employees, ‘listing’ brokers have a fiduciary responsibility to the landlord, their ‘client’. They are accountable to the landlord and must, at all times, use their best efforts to protect and promote the landlord’s interests.

Property managers and ‘listing’ brokers view tenants as merely ‘customers’ who are not entitled to the same degree of service or confidentiality as is the landlord. When you share details about your businesses circumstances with the listing broker you are actually diluting your future negotiating leverage. The less they know about your businesses circumstances the better.

Why should I use a tenant broker?

When you engage the services of a Tenant broker in Florida, they have a fiduciary responsibility to represent your interests. Their allegiance is to you and not to a particular building or owner. They have an obligation to negotiate the very best deal on your behalf and will earn their commission wherever you decide to locate. Also, because Sarasota’s commercial real estate market is a fairly small arena, your tenant representative should be knowledgeable about off-market properties and the pulse of the local market.

Is it in my interest to sign an exclusive letter of engagement with a tenant rep broker?

A broker representing you exclusively will work much harder to meet your requirements if it is certain that they will be compensated when a deal is consummated. Landlords receiving offers on space from a broker representing a tenant exclusively will take that offer far more seriously. Our reputation in the Sarasota market opens many doors and landlords in the downtown Sarasota and Lakewood Ranch area appreciate our professionalism and experience.

Why not search for space myself?

Hiring a tenant broker will save you time, money, add efficiency and enable you to negotiate a better deal. Furthermore, a tenant broker will represent your interest’s exclusively and insure that you negotiate the best lease.

Does it cost me anything to engage the services of a tenant rep broker?

There is no fee to the company that leases space. Customarily it is the landlord that pays brokerage fees. The only exception to this rule is if we sublet space on your behalf.

Should I hire a tenant rep broker if I intend to renew my office lease?

Hiring a tenant rep broker permits you to present your landlord with the credible threat that they may lose you as a valuable tenant. This leverage will enable you to negotiate superior lease terms.

How much space does my company need?

The amount of office space you require will be determined by the size of your staff as well as the number, layout and size of the offices, workstations, cubicles, reception areas, conference rooms, pantries and common area necessary for an optimal work space.

What is the difference between usable square feet and rentable square feet (RSF)?

Rentable square footage includes common areas (elevators, corridors, vertical penetrations) as well as columns and walls. This measure does not take into account the number of square feet that can actually be used. Landlords customarily use rentable square feet.

Time frame (in weeks) for office space acquisition

Size to Sq. Ft.	1,000 - 2,500	2,501 - 5,000	5,001 - 10,000	10,001 - 50,000
Initial Planning	-	1-2	2-4	4-8
Search for Space	2-6	4-8	4-12	6-24
Lease Negotiation	1-2	2	2-3	2-6
Construction	2-4	2-8	6-10	8-20

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