BUSINESS TENANT REPRESENTATION

Decision makers like you have a lot on your plate – and facilities decisions aren’t generally something you’re looking to add to the to-do list. So, what’s a busy person to do? Your current landlord tells you that the good relationship you have with them means you don’t need outside help to get a fair extension or renewal. Brokers will all tell you that they’re the best and would love to help you move – for “free”. So, what’s the catch?

Information is always helpful and a thoughtful process produces consistently good outcomes. This is all true with facilities and leasing decisions just like other areas of your business.

When the landlord wants to work out a deal directly, it’s often because they do want to keep you, and also because they have the upper hand in many ways if you don’t have additional help. How do you know what’s fair if you don’t have any recent, apples-to-apples data when you head into the negotiations? What are the rates, concessions, lease flexibility and tenant refreshing dollars that you should be getting?

Brokers will tell you that they’re the best and that they have your interest at heart, but then why do they often start assuming that you should move? In many cases renegotiating is a viable option. How can you sort it out and select someone who’s a fit for you and your organization?

Transparency is a good start for the discussion. How will they help – specifically, with a scope of work like any consultant to whom you’re paying a fair amount of money (albeit indirectly). It’s free, many of my competitors say. Well, if you think the landlord isn’t looking at transaction costs including brokerage fees then I suppose that makes sense – but just because a broker says it’s free doesn’t make it so. Ask how much they will make upon successfully representing you and you may think twice about expectations and clarifying what services you’ll be getting from the broker for that amount of money. And the hesitancy with which many will respond to that question be may be an indicator of how they view their potential relationship with you.

Grossman Services approaches it straight forward. We’ll work with you to understand your situation and prepare a proposal that incorporates some “what ifs.” A renewal doesn’t typically take as much work as a totally new deal so how is compensation dealt with in that scenario? Our scope of work will clarify phases, deliverables and special skill sets. Expertise with things including negotiation analysis, net present value and subjective forced ranking will help ensure you are fully informed as you make your decision.

This thoughtful, process oriented, open approach means you are really a client, not just a customer, and that you will get the assistance and expertise to make a well informed decision – peace of mind in this tumultuous market.