Now that you understand why you need one and how much it will cost, how do you go about hiring the best tenant rep broker for your company?
In order to make the broker selection process easier, we’ve outlined the key questions you must ask a tenant rep broker during the interview process.
1. Does the broker work for a reputable firm?
Making sure your tenant representation broker works for a reputable firm is important. Reputation and resources are key components to hiring a reputable broker.
Client testimonials and references can be key to understanding if a firm just presents well, or if they truly have the sophistication and ethical standards to get you the best results possible.
Additionally, you should ensure your broker has the resources needed to handle your project, including:
- Listing Sites
- Mapping Software
- Market Research Department
In most markets, you will run into both national powerhouses and local experts. To help navigate which is best for you, we’ve put together this article highlighting the pros and cons of each type of firm.
2. Has my broker made reputable and trustworthy deals in the past?
It is equally, if not more important, to make sure that the specific broker within the firm you are considering has pleased clients in the past and has a sufficient amount of experience.
Your broker’s reputation within the industry can materially affect how landlords and listing brokers treat your prospective tenancy. Tenants whose broker’s had positive interactions with other industry professionals can reap the benefits of accumulated goodwill, while tenant’s whose brokers had less than pleasant experiences with other industry professionals may have to deal with unwanted and undeserved consequences.
Ultimately, tenant rep brokers want to have a strong reputation and do well for their clients so that they can win more business. Being honest, trustworthy and a good negotiator are all crucial to maintaining a positive reputation in the industry.
5 Reasons to Hire a Tenant Rep Broker From a Full Service Firm
Your broker should be able to provide you with a number of testimonials and references from previous satisfied clients, and those clients should be able to confirm their satisfaction from working with the broker.
3. How much experience does my broker have?
This does not necessarily mean how long a broker has been in the real estate industry. Instead, you should ask questions about how well they know the local market and the kind of property you’re looking for.
4. Does my broker specialize in my industry?
When looking for a tenant rep broker, you want to make sure your broker not only specializes in tenant representation, but understands your property type and industry.
Because of the variety of commercial lease structures and elements of commercial leases, it is important to find a broker with experience dealing with your specific needs. In addition, the office market, industrial market and retail market all have their own industry trends and networks, which a property-type specialist will understand.
Additionally, you’ll want to make sure your broker understands the specific needs of your industry. From law firms to tech start-ups, call centers to distribution centers, each type of business has it’s own unique requirements for space. Be it high parking ratios and the ability for high-density office space or the need for substantial tenant improvement requirements for luxurious common spaces, a broker who has worked with similar companies or firms will likely already be aware of these needs, and may even make a few recommendations based on what they’ve learned from these past transactions.
5. Does my brokerage firm offer additional services and assistance throughout the process?
Finding the right space for your company is only the start of your commercial real estate journey. Your broker should be able to assist you with finding the right consultants and contractors for personalizing your workplace strategy, IT infrastructure, furniture selection and often times can offer you important business insight from past deals. Furthermore, in the future you can reach out to this broker should you need to expand, renew or relocate.
By working with an exclusive tenant representation broker, that broker can then deploy additional company resources and bring in a dedicated team to assist with your transaction, including financial analysts and advisors, project management, architectural teams that will help the tenant come to realize their total future costs.
5 Reasons to Hire an Exclusive Tenant Representation Broker (Not Multiple)
In addition to the services your broker can provide, your broker should be able to provide you with recommendations for a project manager (a must-have if your new space requires renovations of any sort). Most full-service commercial real estate firms have project management teams that can (and should) be brought in during the site selection process.
We explain the benefits to be had by engaging a full service firm in our article 5 Reasons to Hire a Tenant Rep Broker From a Full Service Firm.
25 Questions to Ask Before Hiring a Tenant Rep Broker
We’ve compiled a list of the 25 must-ask questions you should before hiring a tenant representation broker.
These questions will ensure that you find a qualified, capable broker who is also the right fit for you and your company.
Do you work for a government, education or non-profit entity or organization?
If so, you may be required to undergo a formal bid process, known as a Request for Proposals (“RFP”) or Request for Qualification (“RFQ”), in order to select an approved vendor or vendors for your commercial real estate needs.
Read our article How to Write a Request for Proposal (RFP) to Hire a Real Estate Broker to learn more about this process.
See How AQUILA Has Helped Other Businesses Just Like Yours.
Sample Commercial Real Estate Brokerage Services Agreement Template
Once you select your tenant representation broker, you will need to sign a brokerage services agreement. Are you curious what a brokerage services agreement should look like? Or not sure where to start when drafting your own?
This free, editable Word-based Services Agreement Template will give you an overview of what your agreement should look like and a good starting point for writing or amending your own.