Tenant Representation in Commercial Real Estate

What is Tenant Representation?

Tenant Representation for commercial real estate is similar to what's often referred to as "Buyer Representation" in residential real estate. The agent does not have a listing of a given property, but represents the client or buyer, to identify and show those properties of interest.

The purchase or leasing of commercial property for a buyer can be a daunting task for the individual or company who is new to the market or one who desires to expand or consolidate their operations in a given area. With the aid of a qualified broker the tenant representation, service affords the client the means of achieving the best results for a lease or purchase, and most importantly is at no cost to the user or purchaser. Commission and fees are paid by the Landlord or Seller for performing the service.

When your organization is considering an expansion, a relocation, a site for future use, a built-to-suit, an investment, a purchase or a lease - it is critical to your bottom line to have an 'advocate' ensure that every phase of the transaction is handled to your advantage. As your advocate Crye-Leike Commercial is dedicated to obtaining the optimum space for your current and future needs. We will obtain that space or site at the best economic terms and contractual flexibility available in a sales/lease agreement.

Tenant representation services include

• Extensive, experienced commercial real estate background.
• Ability to offer alternative suggestions.
• Position of strength through market awareness.
• Responsible central source for assembling presentations and responding to inquiries.
• Objectivity throughout the analytical process.
• Exclusive representation specific to the client's interest.

Benefits of tenant representation

When a client's objective is to profit from real estate decisions, Crye-Leike Commercial's pioneer record of experience offers the very best in secured performance and most importantly, results. The Commercial Division offers business and investment real estate services for investors, developers and other commercial clients.

Areas of specialization include

• Retail
• Office
• Multi-Family
• Restaurants
• Industrial
• Hotel/Motel
• Land Sales
• Church Property
• Sale of Operating Businesses
• Broker's Price Opinions & Other Consultations

Purpose of tenant representation

Drawing on the experience and expertise of the commercial real estate broker to:

• Organize the needs of the client.
• Present these needs to the market being considered.
• Make a thorough evaluation and negotiate the most favorable terms for the benefit of the user.

Evaluation is through an understanding of the clients criteria, including location factors, demographics, financial considerations, employee needs, transportation services, and other special requirements, the broker has the obligation to expose any and all properties the client wishes to consider.

Planning - It is important to have a real grasp of why or how much new space or locations are needed as well as the cost expectations to be experienced in the market. Business and technology trends need to be incorporated into a facility, as well as the understanding of requirements for future growth needs.

Strategy - Crye-Leike Commercial believes the approach of clearly laying out the strategy and fundamental steps to be followed best serves the needs of the client. It establishes the basis of a good relationship, the responsibilities of the parties, the ultimate goal and the necessity to work together as a team.

Defining the Need - The decision to purchase or lease can be very difficult for many. It is often confusing, very time consuming, lacks economic certainty, and is often not under taken in a methodical rational approach. Defining the needs, long and short term, can establish a favorable economic and operational impact on the clients long term goals. The experienced Broker can help define those needs for the firm or individual with its extensive knowledge of the market place.

Implementation - A needs analysis, from physical surroundings, amenities, space and site utilization to financial considerations will be reviewed. The preparation of proposals will be sent to select properties, followed by a thorough analysis, and comparison. When selections are made, final negotiations of a purchase or lease are submitted for client approval.

Content Courtesy of:

Bud Worsham
Affiliate Broker with Crye-Leike Commercial