The main reason to hire a Tenant Representative is for the tenant to have a specialist who will support them in attaining their objective of leasing or buying commercial real estate.  A Tenant Rep should be able to achieve an evenhanded result for their client's exact needs by utilizing their expertise of the markets being assessed along with their knowledge of market rates, negotiation skills and recent lease and sale deals in the various markets. Ultimately a Tenant Rep must put a tenant on the identical level if not higher, with a landlord who has professional representation.

The Tenant Representative's Role

Market Specialist: For a Tenant Rep to be victorious they first need to have a thorough knowledge of the market that their client requires space in. This entails being knowledgeable and having awareness of the inventory of space available in that market.  The Tenant Rep should know the key buildings and more obscure buildings.  They should know who owns them and how they are currently built out. They should also be able to articulate why or why not a particular property would or would not work for their client.  A Tenant Rep must understand the market they operate in and be able to offer a realistic and well thought out opinion of that market for their client.

Expert Negotiator: Not everyone can negotiate. It takes a certain type of individual with time, patience, and lots of practice.  Books and courses are fine but most of all, it takes skill which comes from years of consummating hundreds of lease and sale transactions. The best Tenant Reps know how to give their client the most leverage in a situation based upon their knowledge of the current market conditions, as well as the needs and wants of their client vs. the needs and wants of the building's owner. A Tenant Rep must have a good reputation in their professional circle of relationships. A representative with a bad reputation among other professionals in their field can greatly hinder a deals success.

Going Beyond Brokerage: The best Tenant Reps have the ability to match their client's requirements to the inventory available.  They also know the specifics of what comes after they find their client the ideal space. Having a Tenant Rep who can facilitate the entire leasing process is very important.

Tenant Representatives should have relationships with professionals in the following fields:

a. Space Planners, General Contractors, Architects, Appraisers & Engineers

b. Real Estate Lawyers

c. Title Companies & Commercial Lenders

The leasing and sales process is multifaceted and through-out the process the Tenant Rep will need to be called upon for their expertise.

The best Tenant Reps have knowledge of the latest trends in these disciplines and have an inventory of consultant's names to refer to their clients when the need comes up.

When should consultants be called upon for their third-party knowledge?

1. When designing a space that fits what the tenant is looking for.

2. When having the property assessed for its current market value.

3. When having research done on the current zoning and use clauses for a site.

4. While maintaining quality and cost control in the design and construction processes.

5. When reviewing the lease or sales documents to make sure they fit the client's best interests and are legally sound.

The Tenant Rep should be in charge of managing any consultants added to the team through-out the leasing or sales process.

A Well Rounded Professional

As you probably have concluded, the best Tenant Reps are more than just a broker but a trusted advisor. These professionals take time to fully understand their clients goals, objectives, and logic behind their desire to obtain space. They know the market conditions their client is seeking space in, and know the professionals that make those markets work.

Commercial Real Estate transactions can affect the financial operation of a tenant's business for many years after the initial lease or sales document is signed. Tenants must have the right Tenant Rep to help them identify the correct property or space for their long-term business needs. They need a Tenant Representative that not only knows how to lease or buy property, but all the details that come with that process. Tenant Reps that have these skills will make all the difference between simply being a tour guide to being a Commercial Real Estate superstar with an investment in their client's success.

Nothing contained herein is to be considered legal advice.  Always seek legal advice when evaluating any legal document.