Creating a Competitive Environment:
No landlord knows his/her "bottom line" until the alternative is the loss of a transaction to a competing property. This competition can only be created by taking the tenant's requirements to the market and having a professional advocate.

Flexibility:
Five and ten year leases are great for owners, and can provide tenants with low rents, but the loss of flexibility can be costly. Negotiating for the right to terminate early, the right of first refusal on additional space and/or the right to extend, all give extra flexibility.

Time:
A tenant who works with competing brokers, all of whom are trying to sell their product or service, must either limit the time he/she devotes to real estate or use time that would be better used on his/her own enterprise.

Clarifying Corporate Goals:
A tenant representative uses his/her experience to quantify a tenant's needs prior to presenting properties. What makes the company profitable and competitive; what makes it tick?

  • How important is corporate image and/or visibility?
  • Where do employees live in proximity to the proposed location?
  • Define the importance of proximity to specific highway systems, mass transit, inter modals, ports and/or airports.
  • Define interdepartmental communication and work flow.
  • Define the impact of tax and other government incentives.
  • Stay on track by agreeing to a time frame for the process up front.
  • What are the ideal physical characteristics of a new facility.
  • Ownership vs. leasing.

Market Exposure:
A letter of representation empowers the tenant representative to communicate with a wide range of brokers, owners, landlords, and developers to provide maximum market exposure.

Objectivity:
A tenant representative with experience from previous transactions, empowered by a letter of representation, and apart from internal politics can provide real objectivity to the decision making process.

Third Party Intermediary:
Utilizing the tenant representative to conduct negotiations allows a tenant to insulate him/herself from the process. The tenant can then intervene at crucial points when a impasse is reached.

Complexity and Thoroughness of the Process:
A tenant needs an experienced advocate not rushing to show properties. Leasing or buying property is a time consuming, complex process of which showing buildings should be done only after it is determined that the list of buildings proposed meets the tenant's specific criteria.

Assisting Corporate Counsel on Important Legal Issues:
By coordinating with a tenant's attorney, a tenant representative defines important legal issues while there is still competition.

Patience and Discipline:
This is very important in today's complex real estate environment. For example, patience and discipline are important when dealing with environmental issues since one deals with events with a very low probability of ever happening and potentially with very high cost if they do happen.

Financial Modeling:
An essential element of a tenant representative's service. Breaking down individual proposals gives an objective "apples to apples" financial comparison.

Confidentiality:
A relocation can be internally disruptive to a company. The tenant representative keeps the real estate requirement confidential. That is almost impossible if the tenant works with many brokers. Rumors fly, in companies large and small, as an army of brokers try to present properties.

Compensation:
The tenant representative is compensated for their services by the owner, landlord, or developer with a real estate commission commensurate to local market rates.