If you’re considering establishing a new office or relocating your current business, the task to find the perfect office space can be daunting. To help you navigate the process, Premises Commercial Real Estate has created a resource 12 Step Guide to Lease Office Space that will break down the primary activities and the general time it takes to accomplish them. In addition to this, we will also be covering each step in a series of articles to help you better understand the what and why of each step.
Step 1 of 12: Select a Broker
Some may think that hiring a broker is unnecessary and/or expensive. However, having a broker is critical to not only finding the right space, but also negotiating the best rate and terms. Often the assumption is made that the cost of a broker is paid by the Tenant, but under most circumstances, the Landlord pays the commission for the Tenant’s broker.
The benefits of having a broker include:
- A broker can help determine what your requirements are based on the type of business, number of employees, preferred amenities, etc.
- Expanded access to available spaces in your desired area(s) – Although there are several sites that provide listings for Tenants to browse, the inventory is typically limited due to the cost to the Landlord to list their available options. Brokers typically subscribe and will have access to platforms that house the full inventory of available spaces that may meet your needs.
- Arranging tours of the potential spaces that meet your requirements, then preparing the RFP of spaces you select to pursue further.
- The broker will work directly with the Landlord and/or their broker to negotiate the best rate and terms, tenant improvement allowance and commencement date of the lease on your behalf.
Some things to consider when selecting a broker to work with are:
- Experience/Knowledge/Market Expertise
- References/Recommendations
- Availability
- Cultural Fit
- Service/Integrity
In summary, having the right broker working on your behalf will help simplify and expedite the process while avoiding unnecessary expense and is at no cost to you as the Tenant.
