There’s an old law adage — “A lawyer who represents himself has a fool for a client.” And while there are certainly examples where that isn’t true, it’s an adage for a reason. The same applies when you’re looking for office space; you could do it yourself, just like you could remove that impacted molar, but having a professional do it makes way more sense. Especially in New York City.
Commercial tenant brokers provide their services for free. What?!
Well, free for you. Unlike residential brokers who get paid by renters and landlords, commercial broker’s fees are paid entirely by the landlord. Tenant brokers work for you. Their only goal is to find you the perfect office space, saving you time and money in the process.
And they do it for free. Pretty sweet deal.
Before you start working with a broker, make sure you’re working with the right kind.
A listing broker, also known as a listing agent or leasing agent, is a real estate agent hired by a landlord to fill vacancies in their building.
A tenant broker, on the other hand, is a real estate agent who works for you. Their focus is to learn as much as possible about your business and the day-to-day activities to secure a space that best suits your needs.
One of the greatest benefits of working with a tenant broker, aside from the fact that it’s free, is that they do the leg work for you. After all, you have your business to run; you shouldn’t spend hours scouring listings of potential spaces and noting square footage, amenities, locations, and floorplans. When working with a broker they search out and find the spaces that meet your expectations and needs. All you have to do is view the property and decide which one is right for you.
A tenant broker knows the real estate industry just as well as you know your own industry. While you may lease space every 5 or 10 years, tenant brokers do it every day. Real estate information can be hard to find if you’re not in the industry, so if you go it alone, you’ll probably overlook tons of great spaces. Tenant brokers have access to everything that’s on the market, and in addition, have industry connections that can get you on the inside track for soon-to-be-available or even off-market spaces that you simply couldn’t find on your own.
Those industry connections go deeper than just finding the perfect space. When it’s time to negotiate your lease, your tenant broker can leverage their relationships and expertise to get you the best deal possible, saving you money, and what a lot of money it can be.
By drafting and reviewing all offer letters on your behalf, your tenant broker will negotiate rent price, rent concession, escalations, electric/HVAC costs, trash, cleaning, early access, miscellaneous building expenses and everything in between. With all the intricacies and nuances of commercial leasing, a tenant broker allows you to level the playing field when dealing with landlords and get the best deal possible.
You may think it’s time to move into a private office, but have doubts about committing to something long-term. A good tenant broker can pinpoint sublets and landlords that provide greater flexibility that you otherwise wouldn’t be able to find. As their only objective is to put you in the right space, they can use their experience and insight to find creative solutions that might not have occurred to you
The magic of a good tenant broker is that they can find creative ways to save you money and maximize the opportunity to create the best space possible. This can be furniture, term flexibility, growth clauses, and more.
Because they understand the real estate market as well as you understand your own business, tenant brokers are invaluable in assessing the needs of your business, and finding what’s best for you, at no cost to you.
A tenant broker doesn’t simply disappear once your lease is signed. A good business relationship with a tenant broker enables you to stay at the forefront of the real estate market while you stay focused on your business.
It happens. Sometimes businesses will have to break their lease. Maybe your company has to downsize and doesn’t need so much space. Or maybe you’ve grown beyond your wildest projections and suddenly your perfect office is too cramped to work in. Or, unfortunately, maybe your landlord is failing in their lease obligations, particularly in ways that make the space unusable. When these things happen, you may have to break your lease. Luckily, your tenant broker will be able to offer numerous solutions and negotiate the exit terms (and find a new space) with the least amount of hassle and cost to you.
A tenant broker is more than someone who helps you find the perfect office space, they are a valuable business advisor and an essential asset for any company.
They do all of this for free.
Tenant brokers work for you. Their only goal is to find you the perfect office space, saving you time and money in the process. In addition, they are a valuable ally in the dynamic world of New York City real estate. Their years of experience and real estate expertise are yours to take advantage of. What have you got to lose?
Searching for commercial real estate in New York City can be overwhelming, so why not let someone else help you do the heavy lifting?
Whether you’re just starting to think about a new office space or your current lease is coming to an end, Nomad Group can help you find the perfect spot.