The Benefits of Landlord Representation When Leasing Commercial Space
When looking to lease commercial real estate, owners have an important decision to make – whether to represent themselves or hire an experienced commercial real estate broker to represent them as their landlord rep. Landlord representation can provide significant advantages when leasing out retail, office, industrial or other commercial space. In this blog post, we’ll look at some of the key benefits of having a commercial real estate professional represent you as the landlord.
Expertise in the Local Market
A knowledgeable landlord rep will have an in-depth understanding of the local commercial real estate market in which your property is located. They will know the current average rental rates in the area for different property types. They will be familiar with comps (comparables) – rental rates for similar sized spaces nearby. This expertise is key in pricing your space competitively to attract tenants quickly. It also helps ensure you are getting top rental rates in the current market.
Better Lease Terms
Beyond rental rate, an experienced landlord broker will negotiate lease terms and conditions that provide you with more protection as the property owner. For example, making sure the security deposit is sufficient and that clauses about maintenance,utilities and other expenses favor you as the landlord. They can act as your representative in lease negotiations to get you the best overall lease.
Faster Tenant Placement
A landlord agent markets available spaces through multiple platforms like listing services, digital ads and office/building signage. They have connections in the local business community to help find ideal tenants faster. Their expertise screening tenant applications also helps find tenants that are financially qualified to pay the rent consistently and less likely to default.
Fewer Leasing Mistakes
An experienced commercial broker serving as your leasing rep will help you avoid costly mistakes that may occur if negotiating directly with tenants. Mistakes like ambiguous lease clauses, incorrect base rent terms or improperly addressing maintenance obligations can all negatively impact you. A landlord broker helps craft a mutually beneficial lease optimized for the landlord.
Ongoing Property Management
Many landlord reps offer additional services that provide ongoing property management support after the lease is signed. This can include addressing maintenance requests, rent collection and more. Having the same commercial broker handle leasing and management provides helpful continuity.
Professional Tenant Relations
A landlord rep serves as a buffer between you and tenants, maintaining a professional relationship. If issues ever arise like late rent payments, your rep addresses these directly with the tenant. This is especially helpful for landlords that live remotely from the property.
Conclusion
Hiring an experienced commercial real estate broker to represent you as landlord can pay dividends through higher rental rates, ideal tenants, faster leasing, fewer mistakes, and ongoing support. For commercial property owners, partnering with a qualified landlord rep is recommended to maximize benefits when leasing space.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or investment advice. It is always recommended to consult with a qualified financial advisor or investment professional before making any investment decisions.
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Scott Naasz: (612) 819-8285
Email: scottnaasz@kwcommercial.com
Kaitlyn Page: (701) 220-5123
Email: kaitlynpage@kw.com