Tenant representation is often overlooked by small business owners when looking to lease a commercial space for their business. Most commercial landlords will be represented by a leasing agent that will gladly show you the space, confirm your financial qualifications, and provide you with lease terms. However, these agents are strictly working for the best interests of the property owner and not the small business owner leasing the space. Many small business owners will move forward without representation, but this can be a costly mistake that puts at jeopardy the long term success of the business.
An agent representing the landlord has one sole responsibility and that is to lease the space for the highest price to the most qualified tenant. When they show a space to a small business owner they are focused on highlighting the good aspects of the property and minimizing the negative. They may be able to show you more than one space but they are limited to only the spaces they are listing for the property owner. This agent will be very courteous and they will seem helpful, but they are not necessarily giving you the whole truth.
This is where tenant representation comes in. A commercial real estate agent focused solely on the needs of the tenant can be a valuable asset to any small business owner. For one, an agent representing you as the small business owner will be able to show you all of the options on the market and not try to sell you on one property above all others. Leasing commercial space is a vitally important decision to the long-term success of your business and seeing all of your options and being able to weigh them against each other is a huge benefit to making the best decision.
A tenant rep has only one person’s interest in mind and that is yours. They will perform a needs analysis to make sure you are seeing every property that may work. Once you have determined a preferred location, they use their market knowledge and experience to negotiate aggressively for the terms that work best for your business. A good tenant rep can save you thousands over the term of the lease by ensuring that you are paying a fair market value in rent.
As a small business owner if you are working only with the landlord’s representation you are putting yourself in a weaker negotiating position. A tenant rep can be your best ally and the best part is that working with a tenant rep is typically free for the small business owner. The landlord pays commission to their agent. If you have no representation the landlord’s agent is just keeping all of the commission, if you do have representation the leasing agent simply shares their commission with the tenant rep. It costs you nothing.
With all of the benefits that tenant representation has to offer and the fact that the tenant rarely comes out of pocket for this service, it should be an easy choice for small business owners looking to lease commercial space. Having tenant representation just makes good business sense.
We Can Help
Whether you’re looking to lease, buy, or sell commercial property, now is still the time to do it in Atlanta. The Meridian Real Estate Group has been assisting commercial clients for well over a decade and would love the privilege of earning your business. Our goal is not just to help our clients with a transaction, but to support the building of financial legacies through real estate. Call us today at 678-631-1723 or visit us online at www.themeridianway.com. We look forward to serving you.