Tenant Representation

09-12-2016 | by Looking For Space

It is very important for a Tenant to be properly represented in a complicated marketplace for direct and sublease office space. When choosing a broker you should consider whether or not the company you hire represents the landlord side of the equation, which could compromise their responsibility to fully protect the interests of the tenant.

A "Tenant Rep" broker will only represent tenants in the acquisition and disposition of office space and I want to make sure that our loyal audience of Attorneys, Accountants and Financial Professionals is aware that in addition to facilitating the sublease or license of individual offices, we are also Tenant Representative licensed brokers, with a long tradition and deep knowledge of the New York City commercial real estate market.

Our primary directive is to treat each office space acquisition project as if it were our own. As a small tenant in NYC we are well aware of the impact of the monthly office rent on cash flow and the bottom line. When executing a multi year agreement, the tenant must be critically aware of how the leasehold costs will escalate over the term - and not paying close attention to this before a lease is signed can lead to critical problems later on.

A good tenant representative broker will make sure that the tenant they represent is aware of all of the potential pitfalls that exist in the commercial real estate marketplace in NYC - in fact a good tenant rep broker will "kill" a few deals before actually making the deal that is most correct for the client. The search then becomes a process where there never is a space that the tenant "must have", but rather there are several "best options" that the tenant can choose from, and have the broker negotiate one after the other until the desired results are achieved. This works well, because in an exclusive relationship the tenant knows the broker is looking out for their interests, and the broker knows that the tenant is protecting the broker - and that when they ultimately make the right deal, the broker who shepherded them to that point will be the one that is compensated.

There is an interesting question that comes up frequently, because the landlord (the "sell" side) is the entity that pays the commission to the broker - so the question is, even though the broker calls itself a tenant representative...who is the broker really representing and where do the loyalties lie?

We've always answered that question quite simply. If you meet us you'll get a feel for the inherent honesty that permeates all of our dealings. We like to say, and truly believe that we represent the tenant But because of where the ultimate compensation comes from this can lead to some doubt? So then, the answer is that we represent the "right deal". We make sure that the tenant has explored the depth and breadth of the marketplace - and that the tenant understands values in the segment of the office space market they are looking at. And so, being fully informed, the tenant can choose from the solution set that their broker has provided - - and there is no concept of being "steered" in a particular direction. The true tenant rep broker teaches the client how to do the job.

In thinking about how we work, it is important to recognize that we are a small business and the majority of our clients are also small businesses. We immediately understand the impact of leasehold expenses and their escalations on the bottom line. We know how it feels to walk in the front door every day and smile - and that is the experience we try to impart on our clients.

If your firm is looking for space, and the offerings of shared office space on the lookingforspace.com are not appropriate for you - we want you to know that the professionals underneath the website are experienced, effective tenant rep brokers and if your firm is looking for "private space" between 2500 and 15,000 sq. ft. we have a tremendous inventory of subleases and direct leases of space that has been purpose built for law firm use and if you will consider our firm as a potential broker for your consideration, we're happy to talk to you anytime.

If your firm is looking for space and you'd like our help, please contact Neal Lerner at (212) 986-9100.

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