As promised, here's the fourth and final part of the article. Think of a tenant rep as an experienced captain who’ll guide you through the treacherous waters, shark-infested waters of tenant/landlord negotiations to find the space that’ll have the least negative impact on your bottom line.
7. Have the right mindset.
When you start negotiations with a landlord, you have to have the right mindset. This makes all the difference in the world!
The words you say both to yourself and your negotiating partners are important. Start off by using powerful self-talk where you affirm your most positive attributes. Also, drop the wishy-washiness from your language. By doing this, you’ll come across as more confident and self-assured.
Also, reign in your emotions. By detaching yourself from the outcome, your emotions will take a backseat. This minimizes any anxiety you’re feeling. This little change in your attitude makes a huge difference.
Try reframing negotiations as a way to envision solutions that benefit everyone. This is a great mental exercise if you’re either afraid you’ll end up taking advantage of someone...
…or someone will take advantage of you.
For example, if your landlord loses you as a tenant, he’ll have vacant office space. If he has too many of these, his vacancy percentage will increase. This only makes it more difficult to sell or refinance his building.
So, a signed lease is much more valuable to a landlord than the monetary value of the rent you’ll pay.
It’s in his best interests to keep you as a tenant. Creating “win-win” scenarios makes things less adversarial. But this only works with a landlord negotiating in good faith.
What about those landlords who don’t?
Too often, a tenant feels at the mercy of his prospective landlord, especially if he’s a bully. Always remember you’re in the driver’s seat and don’t let fear take away your power.
Let the landlord know, in no uncertain terms, he can't bully you.
Not all landlords are bullies. But some will push tenants around as much as they can. This bullying often stops if the landlord knows the tenant has professional representation.
The best mindset boost of them all comes when you have a knowledgeable broker in your corner. This is one who’s ready to fight for everything you deserve.
8. Get professional tenant representation that’s not from out-of-state.
It’s exasperating to try to find office space…especially if you lack expertise. This is the main reason you need tenant representation.
When you try to look at listings yourself, you’ll come across LOTS of incomplete information. Tenant reps have information not available to the public. This information includes databases that the public can’t access.
Besides, tenant reps have connections with other leasing brokers, owners, and other professionals. All this networking helps make your leasing experience easier and more effective. Through connections, tenant reps uncover hidden gems the public doesn’t know about.
Tenant reps have the resources to find you all available options. But they don't stop here. They also take time to curate this list.
Then, you end up with only those options that make perfect sense for you. Another thing to think about is the space you want might not be the space you need. That’s why it’s important to sit down with a broker and complete a needs assessment before starting your search.
With piercing clarity, he’ll ask the questions that’ll help you decide what space makes the best sense for you. This is a nuanced process that factors in lots of things you might not even have thought of.
A tenant rep not only can help you discover the space that’s right for you but a location as well. You might have a location in mind. But like with space, it may not be the right one for your needs. A broker who has local market expertise will know if it is or not. He’ll have oodles of experience with this market. This makes him qualified to answer all your questions about the pros and cons of an area.
These are questions that will need answers before you make the final decision.
Tenant reps can also answer the question of whether you should lease at all. Sometimes buying a building outright will be your best option. Your tenant rep can sit down with you and help you decide which is better.
And if you do decide to buy rather than lease, your broker can guide you through that process. A tenant rep takes care of the myriad details that go into every real estate transaction. This gives you the freedom to devote all the time you need to make your practice thrive. Rather than educating yourself on endless market complexities, let a broker handle everything.
Think of him as a captain who’ll guide you through the shark-infested waters. And to the shore, where you'll find the space that’ll have the least negative impact on your bottom line. Finding space might not be as complex as a medical procedure. But it is still filled with all kinds of legal intricacies. Those who don’t have specialized knowledge can get completely overwhelmed.
One of the first questions a landlord will ask is if the tenant has representation. If the answer is “no,” he’ll attempt to figure out if the tenant understands the market. Also, if the tenant has educated himself on the finer points under negotiation. If the landlord senses even the smallest amount of weakness, he won’t offer competitive terms.
And landlords love it when a tenant has representation from out-of-state. This broker won’t have local market knowledge. This makes him much less effective.
Call HPRG at 301-571-9333 for a free lease review. We’ll analyze whether the terms in it are the best for you. And if they’re not, we’ll help you get the lease you deserve!