Now, more than ever, you need a tenant rep. All of the services they provide -- negotiations, market expertise, coordination, and strategic advice -- remain. However, given the complexity of the during- and post-COVID economy and all of the changes that keep coming down the proverbial pike, those services have become more valuable than ever. Here are five reasons that your tenant rep is more important now than ever before.
1. You're (Mostly) Grounded
While, as of this writing in mid-July of 2020, air travel is gradually returning, most people are still largely grounded. If you're going into an office, you're distanced from others and (probably) wearing a mask. Plane trips are sporadic, if at all, and it's harder than ever before to get comfortable on the road. Visiting with other people remains challenging, at least compared to the way it was pre-COVID.
When you're grounded, it's hard to get to know markets and neighborhoods. It's hard to find spaces. And it's hard to tour them. Luckily, a tenant rep can shoulder much of this burden for you so that your time in the field gets used as productively as possible.
2. Space Is Easier -- And Harder -- To Find
One of the biggest COVID-related changes in the commercial real estate industry is the rapid increase in technology adoption. After all, when all you have in front of you is a computer, you might as well use it. That's the good news.
Here's the bad news. First, while more spaces are available online than before, they still aren't all online. This means that you still need a tenant rep to find the best ones for you. Second, there are more online marketplaces than ever before. You might know about Loopnet or Cityfeet, but what the countless other sites that also have space? Your tenant rep tracks the latest online marketplaces so that you don't have to!
3. Your Needs Are Changing
Many companies are finding that they need different things from their real estate. Some need more flexibility and look for short term leases or sublease options. Others want to downsize, meaning that they need to not only find a smaller space, but also find a representative to sublease out their spaces for them. You might find yourself needing help with space planning to accommodate social distancing -- and might even need more space, too. It's hard to know what you need now, and even harder to predict the future. Having an outside third party to both advise you and help you build the right kinds of lease agreements to maximize your options in a changing world is uniquely important today.
4. The Market's Changing
The commercial real estate market is also changing. The initial response to COVID created opportunity for tenants and landlords looked at a time when showings would be either impossible or, at best, few and far between. While the societal response to the pandemic has shifted and more forms of traditional (or traditional-like) business have gradually come back, the degree of economic harm caused by COVID and response to it has also become more clear. Most landlords are willing to work with tenants, which means that you need to have access to the latest information on market conditions and on which concessions are most likely to be granted. This is a tenant rep's key area of expertise.
5. There's More to Negotiate
For all of these reasons, commercial real estate negotiating skill is more valuable than ever. Not only knowing what to request but how to ask for it, especially with some landlords under duress, is the key to minimizing your occupancy cost for the near- or long-term.
For all of these reasons and more, you need an experienced, dedicated tenant rep to help you with your company's commercial real estate needs. iOptimize Realty® has decades of experience working with companies like yours in all types of markets. Please reach out so that we can help you assess your current situation and your future needs.