It is difficult to overstate the importance of quality tenant representation in commercial real estate. Through the peaks and troughs of the market, a good tenant rep must be able to assess economic trends, broker deals, thoroughly evaluate a client’s needs, and make sure those needs are always their priority. The best reps will possess a rare combination of market awareness and vision. They’ll not only work for you but with you to understand that the deal is more than just finding a rental space – it’s a decision with specific financial implications that directly impact the success of your business.
If you’re thinking of braving the property market alone, take a moment to review the hallmarks of an experienced tenant rep – and how having one on your side can make a world of difference.
A successful real estate deal must be viewed within a strategic framework. A great tenant rep will size up a potential property holistically, evaluating exactly how it will meet the client’s needs while contributing to the business’s bottom line. They’ll do a thorough check on the property and basic financials of course, but beyond that there are a variety of factors that may or may not suit the property’s intended use.
In order to find the right facility, professional tenant reps become lay experts about their client’s profession. A physician looking to open a new office will have vastly different needs from a manufacturer aiming to move to a new facility, including factors like location, access to parking, visibility, and the physical infrastructure of the space.
Developing this client-specific expertise comes from both experience with a range of clients and asking the right questions. A real estate professional will coax necessary information out of clients who may know they want a space, but may not be aware of the specific elements that will maximize its value. Some examples include:
These are just a few considerations in addition to the essentials that every client needs to know, such as the cost per square foot and zoning regulations. For example, a business services company looking to find a new office space needs to consider if the property’s image is the right one, whether it’s centrally located for employees or clients, and if the building is flexible enough for anticipated growth or reduction of the organization. Tenant representatives assess these needs by spending the time to learn as much as possible about a client’s business.
You hire a rep to help you navigate unfamiliar territory – but you don’t want to be a mystified onlooker while they hammer out a deal on your behalf. You may have a lot of questions, and a good rep will answer all of them while keeping you proactively and fully informed at every stage.
Commercial real estate shoppers should look for a rep who uses an open book process to analyze the entire market. Essentially, this means that you will see everything within the parameters that have been established, giving you greater flexibility and fewer surprises or regrets. With an open book process, there is simply no downside to using a tenant rep – once the list of properties is generated within the specified parameters, you have your pick of the entire market. When it comes to dealing with potential landlords however, that becomes a closed book as the professional tenant rep does their best to leverage the market in their client’s favor. The open book transparency is solely between the tenant rep and their client.
From there, a tenant rep will help you evaluate the candidates based on everything from image and cost to infrastructure access, zoning, future growth, and even macroeconomic or industry-specific factors. Complete information means complete freedom to choose.
Some companies know that they aren’t happy with their current space, but moving may not be the best decision. The rep will assess what works in the current space and what doesn’t, followed by always providing options that are in the best interests of the client. For example, if the current space is too hierarchical for a collaborative work environment and can’t be modified, then a move may indeed be necessary. But if the real issue is that the cost per employee or square foot is too high, or a business needs to expand and there is the potential to lease adjoining space, it may be smarter to simply renegotiate the current lease. If so, the tenant rep will step in to negotiate with a landlord who is looking to maximize his or her revenue stream and doesn’t have the tenant’s best financial interests as a top priority given that the profit motive is understood and appropriate for each party to work hard to negotiate for the best terms possible. The professional tenant rep will take into account the various landlord’s metrics and advise their clients of what is and isn’t a sustainable transaction
A good tenant representative will impartially provide this advice, regardless of the personal financial benefit from one option or the other. Doing this isn’t simply ethical, it’s practical. Success in real estate is as much about long-term relationships as it is about immediate ROI, and one feeds the other.
You can take advantage of our free market report if you’re thinking of a property move. And if you’re convinced of the benefits of top-flight tenant representation, then look no further.
At Morris Southeast Group, we’re proud to be among South Florida’s leading real estate brokers. Since 1976, we’ve been devoted to meeting the diverse property needs of our clients. For comprehensive tenant representation, you can reach us at (954) 474-1776 (ext. 303). To speak directly to our president, call (954) 240-4400 or email him at firstname.lastname@example.org.
For better or for worse, we live in a data-driven world. Everything we do, eat, wear, or Google leaves a digital footprint to be placed in an algorithm for further crunching, analysis, interpretation, and distribution.
The easiest example is to do an Internet search for anything – a new mattress or a future vacation destination – and see how quickly related information and ads appear in your Facebook newsfeed. From Netflix preferences to complex medical diagnostics, big data is transforming the way many industries conduct business.
For years, big data has transformed industries around the globe, and the growth of the Internet of Things has accelerated this trend. Banking and insurance are two such industries that have turned data analysis into an art. Thanks to modeling massive amounts of information, they are better able to see trends, steer marketing initiatives, and determine risk factors.
While the real estate industry has used data to a point – to get a better view of property values and taxes in a particular neighborhood, for example – 2017 is predicted to be the year that big data will have a much greater influence. The key phrase here is predictive analytics.
Simply stated, predictive analytics is the gathering and analyzing of data through a variety of means, including statistics, mining, and artificial intelligence, to make predictions about the future. For the commercial real estate industry, the availability of this information and the indication of trends can bring the client-broker relationship to a whole new level. Thanks to good data, the broker may be able to spot a client’s need before the client is even aware of the need.
Let’s say there is a client interested in making a real estate investment, perhaps to own a building and then to lease out space. If the local market doesn’t meet the client’s criteria, a smaller market might.
Armed with data, the broker can fine-tune and automatically obtain a location – perhaps a secondary market the client never considered, where prices are lower but future potential is high – and that future potential might be mapped with numerous points of data, from trends within a certain industry to overall economic factors and interest rates.
The key to strong predictive analytics is rich data gathering. To meet that need, companies and apps are popping up to compile data and overlay it so that the combination provides meaningful answers.
Among the data that can be used for a successful transaction:
Even unsuccessful deals can lend a helping hand. One app, for example, gets feedback from prospective tenants to analyze what about the property they didn’t like, such as the physical layout of the space, ceiling height, or windows. This information not only helps the broker to find a more suitable space for the tenant, but it also helps the broker work with the owner to consider renovations.
Morris Southeast Group is excited about technology and its ability to meet the needs of tenants, developers, and investors. Not only does it keep all parties satisfied and profitable, it also helps to keep our South Florida cities growing and vibrant.
Our firm has seen a lot of changes since it opened its doors in 1976. We’re proud to have grown with the times, and we look forward to always looking forward. To discover a commercial real estate property that meets all of your needs, contact Morris Southeast Group at 954.474.1776 for a free consultation. You can also reach Ken Morris directly at 954.240.4400 or via email at email@example.com.