What is Your Time Worth?
How many times have you heard a pitch from commercial brokers claiming they can save you money by “getting you the best deal?” If all you expect from your broker is getting the best rental rate, or the best build-out or savings on parking you may be selling yourself short. A strong tenant broker can save you much more.
At a recent meeting in Orange County, CA, area managing partners of small and mid-size law firms met to discuss the management issues they face. The topic of hiring a
commercial real estate broker came up. One of the attendees made a very convincing argument about the benefits of hiring a tenant broker. He noted that business owners should always hire a tenant broker in deference to a listing agent, duel agent or worse, handling the transaction yourself. He firmly stated that the savings in dollars and time could be tremendous for a firm. He sighted that the broker would be working in your best interest having extensive knowledge of the market and an understanding of what landlords might give in terms of concessions. He added that these factors can result in savings going right to the bottom line value of the transaction. But there is another significant savings a broker can provide for you. Clients who engage IN/House often reap another massive savings that doesn’t show up in any lease document. It falls under the category of saving time.
Once a lease is signed most firms pass the responsibility of lease management or dealing with landlord issues to someone who has other company responsibilities. In almost all cases this individual doesn’t have the real estate knowledge to effectively address these issues. What if you had someone who could manage that major part of your business? Real estate is, after all the second most expensive line item on a company’s budget)?
How much revenue is lost by having that individual deal with those “after lease” matters?
A client just contacted us regarding a billing issue related to their parking charges. We simply asked for a few documents and told the client we would take care of it. Not only did we know the solution but we knew who to contact to successfully resolve the issue. Most likely it would have taken the client several hours to resolve the problem, not to mention feeling a lot of frustration. A simple phone call to IN/House and our you can go back to billing your clients while we resolve the matter to each your benefit and satisfaction.
If you want to save money, as that managing partner suggested, hire a tenant broker to represent you. But if you are looking to save money and know your real estate management is in competent hands, check to see what services your broker provides after the deal is signed.
At IN/House we provide those additional management services typically at no additional cost having already been paid as part of the commission by the landlord, a fee we look at as covering the costs for all those on-going services. Not the normal model but simply our unique approach to commercial real estate.
You don’t have to have a pending transaction to contact us. If an issue comes up, give us a call and we may be able to save you actual dollars but also a bigger savings in the cost of your time.