Negotiating a commercial property transaction can be compared to navigating a minefield – one false step and the whole thing could explode. If you lack personal experience in the fine art of negotiation in this specific field, here are five reasons you should consider hiring a commercial property agent to get you the best deal:
1. The big one – experience. A practiced commercial agent has negotiated transactions like yours hundreds, if not thousands, of times. This will work in your favor in several ways. You’ll have a knowledgeable tour guide during the commercial property lease process, and you’ll have the credibility that comes with choosing to engage such an expert. When you show up on a prospective landlord’s doorstep with your experienced agent, you can expect a certain level of respect. And a mutual respect between buyers and sellers or lessees and landlords typically translates to a much more streamlined transaction.
2. Leveling the playing field. Don’t fool yourself – the landlord you’re dealing with has a great agent. And you should have one too. Consider this: landlords are in the business of leasing real estate and they see the benefit of hiring a professional agent to represent their interests in a transaction. That alone should tell you all you need to know. You need an equally experienced agent to advocate for your interests just as hard as the landlord’s agent is working for him.
3. Leveling the field even more. Never forget that the landlord you’re dealing with is experienced in negotiating real estate leases, and he’s after the best deal he can get. Can you say the same? Landlords transact numerous lease deals every month and bid on many more every month as well. The intimate market awareness that both a landlord and his agent gain from this process is invaluable to them when the time comes to negotiate your transaction. Bottom line – 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.
4. All of that paperwork. Are you experienced with negotiating terms and including factors 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 50 plus legal sized pages composed in a small font, with every page chock 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 comfortable reading and understanding the legal clauses and fine print in your lease? Your agent is familiar with these matters, and together with your attorney, will work to protect you from unreasonably onerous lease clauses.
Taking this one step further – 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 likely seen it all. Take advantage of this experience to 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.
5. Reducing stress. This is what your agent does for a living. What’s the drawback to teaming up with a pro who has been around the track, who has the respect of his peers in the marketplace, who can streamline the entire process and keep your best interests front and center? The right agent can even make the process fun!
If you’re in the market for commercial real estate, we welcome the opportunity to assist you. Use our Quick Answer Form for a list of properties that match your specific needs, or contact us directly today.