Has your company changed how it does business? What I see – tenants are doing more with less – less space, less people, less parking, less days in the office, less in-person meetings and less makeup. Personally, I feel bad for my dry cleaner! I have been to the dry cleaner twice in the last 2 years – once to drop off pants for alterations and then to pick up the pants a week later.
The Sacramento office market has been dramatically impacted. Many office building owners are facing significant challenges as tenants downsize or move out. Office tenants have been paying rent for space they don’t need – but when the lease expires, they can move to a new building or negotiate a new lease with their existing landlord.
While the internet provides a boatload of information regarding office space available for sale or lease, it is still tough and time-consuming to navigate the complex real estate market. There are many nuances to each sub-market, building and commercial real estate deal.
Hiring a broker to represent you, should be in your company’s procedure manual. An experienced professional commercial agent will save you more time than you can imagine. And when it comes to money, the deal you end up negotiating will be considerably better if you use a broker.
Pro tip #1: Do not use an agent who represents your current landlord or any other building you might consider. It is nearly impossible for a broker representing your landlord to effectively represent you as well.
Hiring a commercial real estate broker is one of the best ways to ensure that you make the most informed decision when leasing office space. A commercial real estate broker knows the market and every building owner’s reputation. Considering all the nuances of each office submarket, each building and each ownership group, why wouldn’t you hire a broker to represent you? Well, here are four reasons to have an exclusive broker in your corner:
1. Time savings and expertise
Some tenants feel that by having multiple commercial agents (and/or landlord representatives) looking on their behalf, they will see every option. In fact, the opposite is usually the case. First of all, if you have one agent representing you, they will take the time to vet the options and dig into possible off-market options. Second, everyone, including tenants – has access to leasing information. Since all the information is available to all commercial agents as well, anyone can provide you with a survey of options – even if they have only been in the business a week. Third, your exclusive agent can assemble the team required to get the job done – including ancillary services such as project management, construction management, space planning, and lease review (legal services).
2. Uncompromised, consultative advice
Without an exclusive commercial tenant representative, companies fall into one of two potential leasing traps: a) working directly with the landlord or landlord’s agents or b) working with multiple brokers. Unfortunately, in both cases (you) are more likely to receive biased or “selective” advice. While you may have an existing relationship with the landlord’s agent, the landlord’s agent has a fiduciary relationship with the landlord. Your exclusive agent (your fiduciary) will create a competitive environment for your tenancy; your landlord will know that you are looking at options and that you are not a captive audience. A good tenant representative will ensure that your landlord thinks there’s a possibility you could move – hence creating leverage.
3. An objective, data-driven decision
When you hire an agent to represent you, you are getting 100% of the agent. Entrusting an agent with the responsibility to “handle” your company’s real estate needs is a significant gesture. And in return, you will get the highest level of service and unequivocal representation. Only an exclusive agent can dedicate the time and resources necessary to provide this level of dedicated service.
4. Peace of mind
Pick anything –traveling in a foreign country, saving your marriage, remodeling your kitchen or assembling a closet from IKEA – it’s always easier when you have a trusted professional by your side. When it comes to commercial real estate, if you retain Bacon CRE, you can rest assured that you are being represented without compromise. The job will get done as promised.
Office Space is not going away, and professional commercial brokers are here to stay. No form of artificial intelligence is going to supplant the creativity, professionalism or negotiating skills of a trusted commercial real estate advisor.
Bacon Commercial Real Estate makes the process of procuring or marketing commercial real estate efficient, transparent and effective. Thirty years’ experience coupled with creativity and market insight, help our clients make informed decisions.
The commercial real estate industry is a long-term, relationship business. In dealing with others, a level of understanding must be achieved before the end goal can be achieved. We focus on exceptional work every step of the process while keeping an eye on the desired outcome. An exceptional outcome is the natural conclusion to a professionally