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Lease Renewal: Why a broker can get you a better deal for lease renewal
By: Yves De-Luis | 6/7/2011 11:50:19 PM
Why a broker can get you a better deal for lease renewal
Real estate brokers know best when it comes to real estate market scenarios. What most tenants do not realize is that the possibility of a better deal somewhere always exists. Chances are, only qualified real estate brokers know exactly where to find them. Due to the increase in available office spaces, the current office leasing market favors the tenants more. Compared to their current terms, tenants can reduce their real estate costs up to 50% easily if they only knew how to leverage on the market. Hiring a qualified real estate brokerage company can help you understand the dynamics of the market and gain insights in order for you to get a better deal if not the best one.
Informed tenants engage a real estate consultant in order to establish the leverage necessary to negotiate terms according to today's market conditions. A qualified real estate consultant will provide the comprehensive market data and expert advice necessary to create an effective position in your negotiations. Simply put, your landlord won't offer the most aggressive terms and conditions until they understand they are in a competitive environment. This is the advantage of professional tenant representation.
Establish fair market value
Landlords try to reduce their transaction costs by limiting value-adding components in the lease terms while tenants are on the flip-side wanting their rental costs to be inclusive of all items possible to maximize the value of their lease. Given the two opposing interests, fair market value is achieved when both intersect resulting to a common price which a landlord is willing to give and a tenant is willing to pay at the same time. Real estate brokers help achieve this fair market value by preventing information asymmetry between tenants and landlords. While landlords get to reduce their transaction costs, brokers ensure that the components included are valued correctly with respect to current market standards
Foster better tenant-landlord relationship
A real estate advisor often acts as a mediator between tenants and landlords in pursuit of finding a mutual agreement between the two. Generally, the relationship between a tenant and a landlord has a lot to do with the real estate broker's management. Hiring a competent real estate broker to represent your company builds up your credibility to the landlord. Having "feet-on-the-street" shows that you do not just opt for the next available and convenient option. You think carefully and do proper research in order to come up with an informed decision.
Whether you opt to move or keep your current leased office space, having a qualified advisor for leasing matters will help you and your company come up with the best possible decision and be in a better off position.
Contact KMC MAG Group for Lease Renewal: Why a broker can get you a better deal for lease renewal