How to Hire a Great Commercial Tenant Rep for Your Business
We want to walk you through how to get the right tenant representative for your business. But first things first, what is a broker? Well,in Texas, a broker is loosely defined by the Texas Real Estate Commission (TREC) (Texas Real Estate Commission) as a managing member and sponsor of a real estate brokerage firm both residential and commercial. To us, a “broker” a catch all that means broker/agent really, anyone who is working in the commercial brokerage business that can potentially represent you.
There’s no special test for commercial real estate (CRE) brokers. The licensing commission was formed to regulate residential licensees, and commercial ones were just added along to round out the commission’s mandate. The testing, classes, and licensing process has almost nothing to do with commercial brokerage. Pretty much anyone with a license in Texas can represent you, but that’s not always best for your interests.
We need to make a firm cut between residential and commercial brokers. “Real Estate” is a massive industry; the best brokers and agents specialize (and there is plenty of room to do so). Beware of Jacks of all Trades. The ones doing both are often doing it for personal financial reasons or goals, and not because it’s the best use of their or their client’s time.
Note: Ready to hire? Looking for abroker to represent your needs?
If you want to hire a great, pre vetted and local commercial Tenant rep in Houston or Austin visitVoxLink The best brokers are here.
Make Sure You Have aTENANTBroker
YouNEEDa full timecommercialtenant representative. They exist we promise. Feel free toaskus at Tenavox and check outVoxLink. But another thing to note is authentic hermes blanket replica
that you’re looking for a “tenant” representative here, not a “listing” representative. It’s confusing because many brokers (in commercial) do a bit of both, and some specialize. As long as they’restrictly commercial,this is fine. But by law, listing repsCANNOTanddo notrepresent your interests. They literally work for the other guys. So find out what their primary business is, as it speaks to their time commitment and focus. Are they only representing you because they really just need a commission? Or, is this their full time profession for many years?
Start withVoxLinkit’s theonly resource to matching and connecting with the best brokersin your market.
FUN FACT: if your representative does not get a written representation agreement from you, fully executed, they legally DO NOT represent you. And by law, they represent the Landlord, too. Crazy world, I know. Bottom line? Any solid tenant representative will ask for a signed agreement. This is a GOOD sign; if they don’t want you to sign an agreement, they don’t really want to represent you. Move on to those who do and will.
You want to hire a broker to represent yourinterestsand theinterestsof your business. In some cases, theseinterestsrange from just a simple location based choice for a corporate decision maker.
Hiring a broker is handing them the keys to your livelihood. It may seem easy early on in your process to just say, “Ok, whatever”, and let that fresh faced residential agent complete a market study for you or to just take the words of the first listing broker you interact with as gospel. If that is how you’re feeling, I want you to stop, take ten minutes, relax, meditate, shoot a pillow, do SOMETHING else because you’re not in the right mind to make any decision, let alone one this big. I know the process is frustrating, but DO NOT GIVE UP (and in) to the status quo. You will find the right space and negotiate an effective lease. Stick with me here, We’re about to give you a foolproof way to get the right commercial tenant broker.
Number 2: Ask for recommendations. We have agreat listof our top brokers in many markets. This is cultivated by tenant ratings who have been through the very same process as you. Find the right fit with our recommended broker lists.
Number 3: Perform a cultural interview. If you’ve handled numbers 1 and 2, you’ve already made technical determinations. Now, you need a cultural fit. This person will live and breathe your business for the next 90 180 days (or more).
Ask questions like the following:
Do you have the experience to represent me and my business? (ask for references and examples)
Give me a rundown on the difference between NNN and Gross rents? (You know this now, so make sure they do)
Do you know what the average tenant improvement allowance is for my preferred type of property? What should I expect to spend on time and money to make a lease here? (A Good agent/broker has the ability and knowledge to spit this out)
Last one, do you have the time and desire to represent me?
Questions 1 3 are qualifiers, question four is critical. As you conduct the interview, you’ll be able to tell if this broker is someone you TRUST and if this broker fits with your company culture. Also, a good broker has references, so call a few.
Remember, you’re handing over the keys to the car because you need help driving once in a while. Not because you’re a drunk idiot. Make sure they don’t crash your spaceship
The Commercial Brokerage Commission
You’ve selected a broker, so let’s talk dollars and cents. Actually, just dollars and common sense. The number one question I got as a broker after every presentation was, “So, how do you get paid?”
It’s a natural question. If you’re getting sold for an hour, it’s only human to want to know, “What’s this gonna cost me?” In Texas, commercial tenant representatives are paid just like a commercial listing representative BY THE LANDLORD. Now, make no mistake: you, the tenant, are the golden goose of the transaction. You’re the rent payer! You’re SO important that the landlord will pay your representative 67 percent of the total commission and only pay their listing representative (yes, the one who pays all the marketing costs) 33 percent!
So now you know what a broker is, what type to look for, what questions to ask, and how they get paid. Make sure you get the deal you and your interests need! We’re here for you every step of the way.