All too often, we hear stories of commercial and industrial tenants who mistakenly assumed hiring an agent to represent their needs would cost too much or complicate matters. They were convinced that they could handle negotiations with a potential landlord themselves. But the truth is, simply, that just because you’ve played hardball with the car dealer to get a few extras thrown in has no bearing on your ability to negotiate the intricacies of an industrial or commercial lease. Here are three reasons all industrial tenants need an agent.
1. Expertise at no cost to you
Hiring an agent won’t increase the cost of your lease. We discuss this at length in our post, “Does Using a Commercial Agent Raise the Cost of my Lease Rates?” but briefly, such a question usually comes from bad information. Landlords prefer to deal directly with tenants because they can get more favorable lease rates and terms. When a tenant hires an agent to represent his interests, the game changes dramatically. Tenants can anticipate savings in the form of reduced base rent, pre-negotiated renewal rates, limited or capped operates costs and more, all thanks to the agent’s negotiating skills.
So how does an agent get paid? Typically, he’ll share a portion of the fee paid by the landlord to his agent. The bottom line is that your agent’s experience, knowledge and services don’t cost you as the tenant anything.
2. Market knowledge & experience
Industrial real estate agents handle industrial leases and purchases as a matter of course. They are highly skilled in navigating the intricacies of the entire process, and it’s in their best interest to see each transaction to a satisfactory conclusion. When you partner with an industrial real estate agent, you have the benefit of their market knowledge and experience. Unless you’re in the industry yourself, there’s no reason not to look to a professional for guidance.
3. You have a business to run
Sure, you may have an idea of what you need and you can check listings online. But do you really have time to wade through various websites, drive neighborhoods, contact agents on the signs of prospective properties – which should always be done with caution, as discussed in our post, “The Hidden Trouble with the Landlord’s Real Estate Agent,” – and then begin negotiations? You have a business to run. Tell your agent what you want, listen to his recommendations and let him do the work. He’ll guide you through available properties, handle negotiations when you find what you want and make the entire complicated process as easy as it can possibly be. It’s his job to do exactly that.