The economic downturn of 2008 has caused more tenants to look closely at their lease options. Looking for a new space or renewing a current lease is one of the major decisions a business must make and should not take for granted since this involves a considerable monetary investment for any company. The task could be delegated to one of the staff to handle; however, getting a tenant representative is always going to be a wise step for any business owner to consider.

Following are some of the questions that you might want to review when you are considering the services of a tenant representative.

Why Does my Business Need One?

A tenant representative is a professional realtor who is educated and trained to handle all aspects of a commercial lease including negotiations with the building owner regarding all the terms and conditions of such a document. Most employees of a company are not educated to handle these potentially difficult negotiations. You should also have identified for your consideration all available sites that could fit your company’s needs. Again, this is better handled by someone knowledgeable in the field with the time to devote to such an effort. You want any lease to be the best location for your company with the best terms and the least occupancy cost.

When do I Need to Look for Office Space to Lease?

Timing is very critical in the handling of lease renewals. In addition to the time it takes to negotiate any contract, if your decision is to not renew and to move to another location, it does take time to find another office space to rent. Your current landlord is well aware of that fact and that such a search in a short span of time will lessen your options or even cause you to run out of many choices.

Let’s say you decided to look for different office space three months before your contract ends. You wanted to make sure that you had enough time to find new space, negotiate a contract to your advantage, construct cubicles, arrange for utilities and I.T., and move. This is a lot to accomplish in a three month time frame!

Your current landlord knows that you don’t have sufficient time to move. That puts the negotiating edge back on the side of the landlord as you will probably wind up with not many options but to agree with the new lease terms which are likely to be more favorable for your landlord than for you.

On the other hand, if your current landlord is aware that you are searching for new office space with adequate time to accomplish this, it is more likely that you will be offered a reasonable contract to get you to stay and maybe even better lease terms than the current arrangement.

A tenant representative would take care of all of this for you and all you would have to do is sign the new contract – how much easier is that than all of the above steps?

What are the advantages of hiring a tenant representative?

One of the most common impressions of hiring a tenant representative is of the expense it will cost to the business; however, consider the list below showing the advantages of getting such an agent before you let cost be your only factor of consideration:

• Reports to Help with the Decision - Part of what these agents do is to gather all pertinent information and present it to a client to help make the decision that is best for their client. You know your own agent is representing only you and has your best interest in the negotiations. The report your tenant representative provides is a detailed analysis of factors that should be considered for the best interests of the company.

• Personal Advocate -This agent has only one primary interest and that is what is best for your company. Whether you decide to remain where you are or to move to another location, a tenant representative will inspect the physical office space for damage and recommend repairs, negotiate the lease with the landlord and generally overlook the whole process.

• Saves Time – It would take time for the business owner or a designated worker to do the necessary research to make a wise financial decision when it comes to where to locate your business. The tenant agent will do all of the work for you, present it to you in a usable format, and leave you able to make the best decision for your company. You will be free to keep working and not worry about any re-negotiation process.

It is apparent that it is necessary to determine at the earliest possible time if a move or staying in your current office space is necessary. Either way, comprehensive research of the issue is very important. Although it is normally true that a company’s success is a result of the business knowledge and experience that it possesses, there are times where outside intervention is needed. In this particular case, utilizing a tenant representative will undoubtedly help you and your company find the best office space for you!