Should You Use a Tenant Representative Broker for a Renewal?

Have you ever wondered why it is essential to have your tenant representative when renewing your commercial lease? This is the same space you have been in for a while and all that is required of you is to pay your rent again for continuous use of the space. If that is the case, why should you use a tenant representative during renewal?

3 Reasons to Use a Tenant Rep Broker for a Lease Renewal

It is normal to employ the services of a tenant representative when leasing new commercial space and odd to do the same when renewing a rent right? Here are three reasons why it is imperative to use a tenant representative for commercial lease renewal:

1. Leverage

Tenant representatives are skilled lease brokers with ample knowledge of the market trends, the competition among landlords, lease clauses and they know how best to leverage this knowledge when negotiating with the landlord for a better transaction. This is a key skill that a tenant does not possess considering that a tenant must have stayed in the same commercial space for about 3 to 4 years before they need for lease renewal arose, it is also most unlikely for such a tenant to know about other commercial spaces he can use as a leverage when negotiating his current space rent renewal.

2. Market Insight

Tenant brokers are always in the commercial lease space thus they are aware of the market changes in terms of buildings quality, location, rental rates, proximity to prime areas, and so on unlike the tenant. This awareness gives tenant reps a better perspective on how favorable or not the tenant’s lease terms are if there are better commercial spaces that best suit the tenant’s business or an ideal location that will favor the tenant’s employees and then advise the tenant based on the available options before renewing his rent.

3. Negotiate Better Terms

Usually, landlords have the upper hand when negotiating with tenants who do not have a tenant broker by their side due to the different experiences they have garnered with tenants over the years.

negotiation

Tenant representatives understand how much landlords love renewals because it exempts them from incurring maintenance costs and they also enjoy rental continuity since their property is never vacant thus, they use these facts, the technical aspects of commercial lease and the benefits due to a tenant in tailoring their negotiations to the landlord with the motive of re-addressing the old lease terms and making changes in favor of the tenant.

In summary, it is advisable to always employ the services of a tenant representation broker when renewing a commercial lease even if there is a renewal option in the lease terms. In the same way, tenant representation brokers add value via the site selection process in the same way they are there to serve and advocate for their clients during lease negotiations by ensuring that they provide necessary market intelligence to secure the best transaction possible.