Your business is influenced by fundamental factors such as workplace productivity, employee retention, and overhead costs. All of which are significantly driven by forces in the real estate market. Now, more than ever, tenant representatives perform a critical role in your business's success. All of the services they perform, including negotiations, market expertise, coordination, and strategic advice, have not changed. However, these services have become more valuable in our current economy and the regulatory landscape. That's why we've composed a list of six reasons why working with a tenant representative is more important than ever.
1. How You Use Space Has Changed
This past spring, almost all non-essential businesses across the United States closed or began transitioning their staff to remote work. Consequently, how we now use commercial space has drastically changed. Some businesses have decided to adapt their workplace strategy to accommodate a more flexible employee work routine. On the other hand, some businesses have decided to transition to a completely virtual work environment and thus need to vacate their leased space. Others need even more space to reconfigure layouts and accommodate social distancing.
A tenant rep can help all of these firms navigate these changes and provide a huge benefit to companies still in the process of evaluating their future real estate strategy. Tackling this problem on your own is a huge undertaking, and as the saying goes, "You don't know what you don't know." That's where a tenant rep can step in and help alleviate this workload so you can focus on running your business.
2. Your Market Has Changed
It's a new world, and nobody is better equipped to help you navigate the real estate market better than a tenant rep. Their expertise is in monitoring the market and helping companies adjust their strategy accordingly. With a tenant rep to help guide you, this market's unknowns can help make more sense.
3. Getting to Know a New Market Is Challenging
One area in which tenant reps really shine is when you need to find a new space, particularly in a new market or city. With travel concerns still in place, it is not easy to learn about a new market. However, tenant reps who know your desired market inside and out will help you identify the best options for your commercial space, virtually tour them, and negotiate on your behalf.
4. Not Everything Is Represented Online
Another important factor to consider is what you see online isn't always the full picture. Many great spaces are either not online or on the market at all! The relationships that brokers have with one another are priceless and can result in finding space that perfectly meets your company's needs.
5. Negotiation Is at an All-Time High
Nothing is ever off the table, especially in a time like this. This includes lease agreements and already negotiated terms. Many negotiations occur between tenants and landlords to adjust their terms in response to a change in the tenant or possibly the landlord's strategy. Tenant reps are skilled in such negotiations and can assist you in arriving at a reasonable and fair agreement the benefits both you and your landlord. It also helps to work with someone who has a finger on the market's pulse and understands current lease rates.
6. You Need to Protect Yourself in Lease Agreements
Finally, tenant reps play a vital role in protecting you from future changes that could affect your business. For example, is it best to sign a long-term lease to achieve the lowest rental rate, or is it more prudent to negotiate a short-term contract that allows you to adapt to the future? Furthermore, what options or concessions could you not be considering that are common across your market, but your landlord might not be offering? It would be best if you addressed all of these unknowns before you sign any lease agreement, and no one is better equipped to help you than a tenant rep.
Tenant representatives perform a critical role in your business's success and are often the difference between a bad business decision and the space your company needs to succeed. Another important factor is having your lease information organized and available to you to make data-driven decisions. One of the best ways to do this is through Hive Spaces. Hive Spaces is the easiest, simplest, and most affordable way to manage your lease portfolio. Whether you're a Tenant or Broker and oversee fifty leases or just one, Hive Spaces will save you time and money as you spend more energy on your business and less managing your leases. To learn more about Hive, visit us at crehive.com.