A commercial lease establishes the rights and responsibilities of the landlord/property owner and the tenant in relation to each other. On many issues, they have competing interests that are diametrically opposed to the other, yet neither can function without the other. If you own commercial property, acquiring and keeping high quality tenants is essential to cover your costs and maintaining a positive cash flow. While it’s possible for owners to act as their own leasing agent, for most, employing an experienced commercial leasing broker will actually be more economically advantageous in the long run.
What’s your time worth?
Most individuals who purchase a commercial property do so as a passive investment after achieving success in some other enterprise or career. These individuals can get more for their efforts by investing in the capabilities of working with a commercial leasing broker to save time and effort. There are many layers involved required in the leasing process which may take weeks or months before a property is agreed upon, such as:
- Organization of marketing budgets & ad placements for the property
- Review of all potential applicants,
- Screening of potential tenants (run background checks, review financial documents, check state corporate filings, etc.)
A leasing broker speeds up the process and helps the owner better understand what is needed for the purchase.
The learning curve
Even when an owner can get up to speed in learning how to attract potential tenants, there is almost certain to be some time to get there. Will it take two or three months longer to get the property rented? Six months? What is lost in rent for that period of time can be significant and more than a commercial leasing broker would cost for the entire year.
An experienced leasing broker has a network of contacts and information sources already in place. A broker knows how to get the message out regarding new properties on the market. And instead of only targeting prospective tenants, a leasing broker also has relationships with tenant brokers, which can exponentially raise the number of prospects for the particular property.
There’s a reason most business deals involving real estate involve a third-party intermediary in the negotiations; it’s a proven, time-tested way to get the best deal. Having a brokerage company represent you can literally put money in your pocket.
Commercial lease negotiations are seldom straight-line paths. As the deal progresses, there are likely to be multiple offers and counteroffers, renegotiations and plenty of paperwork. Primior has the training, knowledge and market expertise to get the job done efficiently and with the goal of getting the property owner the best deal possible.