If negotiation efforts result in lowering your rate by $.05 or $.10 per rentable square foot per month but leave money on the table by not negotiating other factors, opportunity to reduce tenant obligations and expense elsewhere can be missed. Having 100% dedicated representation resolves this, and a good tenant rep will look at all the factors that affect your cost, risk and obligation. The market, landlord motivations, accounting methods and occupancy trends (large and small) all affect pricing on a deal. It serves well having someone 100% on your side to navigate. In the majority of cases in the Long Beach market, the same commission gets paid whether you decide to use their guy or have your own.
Divided Loyalty & Dual Agency
Listing Brokers and Leasing Offices’ Allegiance Lies with the Landlord
Tenants and Landlords are two different animals, each with different goals. The listing brokers and leasing office are beholden to the landlords because the landlord is the more lucrative client. This is where their true allegiance lies. How can they then turn around and negotiate the lowest possible rent for you ?
It would be unwise for them to negotiate aggressively to lower your expense; it would sour their landlord relationship. In fact, it’s fiduciary for them to negotiate the highest possible income for the building.
Until there is competition and representation, landlords almost never give tenants bottom-line economics. If what the market bears is unclear or you are sending signals that you are staying put, your leverage is weakened.
The best case is where there’s no inherent conflict-of-interest, and where it’s ethics and legality to represent you 100% to get the best space at the best price.
Naturally, fees are always a big question. Instead of all the commission going to one party, it gets split between two. You don’t save by not having your own guy advocating and protecting 100% on your behalf. Herein lies the dirty little secret of commercial brokerage.
Parker Advisors Represents the Office User Not the Landlord
Parker Advisors understands the process on both sides, and we’ve built many years of trust and goodwill with brokers and owners for one simple reason – Reduce your lease expenses.
What is the New Creative Office:
It’s a dramatic shift in how we use space, becasue it’s smaller & smarter. They can be studios or team-based environments with new common areas.
Let’s start with the tangibles: Creative Office Space is not just open & collaborative space with fewer offices, polished concrete, natural light, exposed-duct ceilings, operable windows, new furniture systems and expresso. It’s not team or huddle rooms, stand-up desks and smarter technology & super fast internet either.
While efficiency, technology, visibility, and flexibility are all elements, hot-desking o(or hoteling) has all of these elements. If employees are mostly in the field, they don’t have a permanent cubicle or office. “Free flight” technology makes this possible, and you’d be surprised how even the top performers state the benefits can outweigh traditional work space.
Small-business professionals or freelancers can afford to share workspace that promotes camaraderie, good energy, and new business. They are modern comfortable, efficient, open work environment offering various amenities & time-savers that are valued by most workers.
In the end, the new creative office is more expensive with furniture systems, new design and technology.
Who’s doing it ?
It’s not just for creatives, new media and technology anymore. And, it’s not just for millennials (ages 18-32) . Varying industries are experimenting with creative or transitioning to it becasue you’ll see it in sales, administration, engineering, technical support and even document companies and of course, digital media and technology companies. Paramount importance is given to attracting and retaining talent.
Impress & Retain Workers
Efficiency, character and distinctive looks largely impacts talent recruiting and retention. This is an example of the less obvious reasons to go creative. It can be bragging rights similar to what going-green can do. If a green project doesn’t pencil out, it improves image and in this case “just being able to say you did it” can differentiate you from your competitors.
Whether you are looking for new office space, or simply a renewal on your lease, it is critical that you hire an office tenant representation specialist – someone that ONLY has your best interests in mind. A tenant rep broker has a fiduciary responsibility to make sure that all of the tenants needs and concerns are met especially dealing with a landlord that believe it or not will have its own representation. Here are some of the reasons that having someone on your side of the negotiating table will help you avoid the common mistakes of trying to represent yourself while getting the ideal office space location at the best possible price at no cost to you.
Dual Agency – We represent our clients and our clients alone
- When you have a tenant representation broker working with you, he’s ethically and legally bound to put you first. Your broker has one job — to get you the best possible space at the best possible price.
- Being represented by a tenant rep instead of a listing broker means that we are loyal to your interests alone. We create competition between landlords and and push them harder for better-than-market terms.
- For the same reason you don’t hire the same lawyer to represent both sides- our “tenant only” focus eliminates the inherent divided loyalty that comes with representing both tenants and landlords. We represent our clients and our clients alone.
Commissions/Fees – A Tenant Rep doesn’t cost YOU anything
- The fee is paid regardless if you are represented or not. There is no cost savings to a tenant by not having your advocate protecting your interest.
- A tenant rep doesn’t cost you anything, and you can save a good deal of money by hiring a professional
Dollars- What you don’t know can and will cost you
- There are many hidden items in a lease that cost tenants’ money over the lease term. These hidden costs need to be addressed when negotiating a lease…. not just the rent rate.
- Owners almost never give tenants bottom line economics until there’s competition
We recommend that a tenant take the time to consult with one of our long beach office market specialists who can answer any and all of your concerns, provide expert advice at no cost to you and without any risks or conflicts of interest.