The Benefits of Lease Brokerage & Why It Matters
Whether you are a tenant or a landlord, lease negotiations will play a major role in the success of your business. So, it can be incredibly beneficial to have someone in your corner to give you the leverage you need to negotiate more favorable terms. We’re talking about a commercial real estate broker who specializes in lease brokerage. This includes commercial real estate market research, evaluation of the property/space, strategy, lease analysis, and – ultimately – lease negotiation.
Lease Brokerage for Tenants
There comes a time in every tenant’s life when lease expiration begins looming in the distance. When this time inevitably comes, you have a few options. 1) Relocate your business to a new space that fits your needs and your budget better than your current location, or 2) renegotiate that lease and stay put. However, if you choose to go with option number two, it helps to enlist the services of a tenant representation broker (tenant rep) who specializes in lease brokerage and renewals.
- A qualified local broker will know the landlords, the properties, the market conditions, the competing dynamics that play a role in discussions, opportunity costs, and many other factors that might affect your new business terms.
- Brokers have access to up-to-date market data, databases, and tools that track industry trends, vacancy rates, and comparable properties. This data allows us to be incredibly strategic when negotiating your new lease.
- Renewing your lease doesn’t just mean an extension of the old lease terms. It’s essentially a brand new agreement. Your broker can use lease renewal to negotiate tenant improvement (T.I.) to better align your space to your business needs.
Perhaps best of all, hiring a commercial real estate broker to negotiate the terms of your new lease won’t cost you anything in most cases. Almost every lease deal has a paid commission built into it, funded by rental dollars.
Lease Brokerage for Landlords
Owning and operating a commercial property is an investment. So, maximizing your return on investment (ROI) is a must. That’s why it makes sense to work with a landlord representation broker (landlord rep) when negotiating leases. An experienced broker can not only help you attract high-quality tenants, but they can also help you develop an in-depth understanding of your assets and enhance the investment value of your property.
- Again, qualified brokers have existing relationships that can help ease negotiations. In this case, many landlord reps have existing relationships with tenant reps in the area. They have worked together before and this familiarity can help ensure a deal that makes sense for both sides.
- Just like tenant reps, landlord reps also use data to help inform their negotiations. These brokers utilize the same up-to-date market data, databases, and tools that track industry trends, vacancy rates, and comparable properties. These brokers have a thorough understanding of tenant demographics, occupancy rates, leasing rates, and industry trends.
- An experienced landlord rep can help you make the most out of your commercial property investment and maximize ROI.
United Development Realty Can Help!
United Development Realty is a Commercial Real Estate Broker in Maryland specializing in tenant and landlord representation. We can help you make the best decision for your business and negotiate lease terms that make sense for you. We have access to up-to-date market data, databases, and tools that track industry trends, vacancy rates, and comparable properties. This data allows us to be incredibly strategic during the negotiation process to ensure a fair market deal. And our client-first approach sets us apart from the competition and means that you never feel unheard.
Please call our office (locations in Bethesda 240-221-1976 and Fells Point 410-522-1632) to get in touch with a licensed commercial real estate broker today.