There are multiple moving targets during an industrial real estate transaction, and one of the trickiest components is often the negotiation. Compare it to navigating a minefield – one false step and the whole thing could blow up completely. Unless you have extensive personal experience negotiating industrial real estate deals, you’re likely in over your head. The other side of the table will certainly have significant experience and representation, and it’s in your best interests to have the same. Here are five reasons to leave industrial real estate negotiations to the pros.
There’s No Substitute for Experience
A practiced commercial agent like those here at Miller Industrial Properties in Reno has negotiated transactions like yours hundreds – if not thousands – of times before. This is a benefit to you several times over. Not only will you have a knowledgeable tour guide during the commercial property lease process, you’ll also enjoy the credibility that comes with choosing to engage such an esteemed professional. When you show up on a prospective landlord’s doorstep with an experienced agent, you’ll be received with a certain level of respect. And a mutual respect between buyers and sellers or lessees and landlords usually opens the door to a much more streamlined transaction.
You’ll Level the Playing Field
Be very clear that the landlord you’re dealing with most certainly has a great agent. You need one too. Keep in mind that landlords are in the very business of leasing real estate. They understand the value of hiring a professional agent to represent their interests in a transaction. Doesn’t that tell you everything you need to know? The landlord has an agent working for him, and you need an equally experienced agent to advocate for your interests just as completely.
And Then You’ll Level it Further
In all likelihood, any landlord you’re dealing with has experience in negotiating real estate leases, and he’s after the best deal he can get. Is the same true for you? Landlords transact multiple lease deals every month and bid on many more every month as well. This experience gives a landlord and his agent a level of intimate market awareness that will benefit them significantly when the time comes to negotiate your transaction. The good news? Your agent has the tools necessary to counter the many points your potential landlord will employ in an effort to secure the best deal for himself. Don’t go to the negotiating table without one.
There’s a Lot of Paperwork
Are you experienced with negotiating terms and factoring for things like expenses, maintenance and repair? Everyone thinks of the obvious considerations – length of term, base rent rents, etc. – but there are countless additional and critical aspects of the lease negotiation that can add significant value to your leasehold rights or work to your detriment if not handled properly. A typical lease agreement is more than 50 legal-sized pages composed in a small font, with every page full of points that can be highly disruptive to your business and/or extremely costly during the term of your lease under certain circumstances. Are you capable of reading and understanding the legal clauses and fine print in your lease? It’s understandable if you aren’t. Fortunately, your agent is familiar with these matters, and together with your attorney, will protect you from unreasonably onerous lease clauses.
If you think you can handle this yourself, consider how capable are you of adding clauses that will protect your investment and long term business interests. This is when the value of “thinking ahead” becomes clear. An experienced agent has been involved with lease operations like yours for years and has seen it all. Take advantage of this experience – walk through the “what ifs” and come up with points your agent can add to your agreement that may result in big benefits down the road.
You’ll Save Yourself Stress
Negotiating deals like yours is what your agent does for a living. There simply is no drawback to teaming up with a pro who has does this many, many times before, someone who has earned the respect of his peers in the marketplace and can streamline the entire process, all while keeping your best interests front and center. The right agent can even make the process enjoyable!
If you’re in the market for commercial real estate, we welcome the opportunity to help. Use our Quick Answer Form for a list of properties that match your specific needs, or contact us directly today.