The tenant’s agent, referred to as a tenant representative, provides a valuable service for the tenant. As I mentioned before, tenants are not in the commercial real estate business and rarely know the commercial leasing market. They likely don’t have the time or interest to educate themselves on the commercial market conditions, nor do they have the resources or the contacts to know the terms of compatible deals.
The Tenant Representative fills this gap by providing a wealth of knowledge about the current commercial market along with the ability to select and analyze commercial buildings that meet the tenants space and location needs based on their criteria.
This allows the tenant the ability to focus their time and energizes on their business operations, knowing that a real estate professional is looking for space that will meet their specified requirements on the best possible terms.
Once a decision has been made, the tenant representative will negotiate the terms submitted on the LOI (letter of intent). The tenant representative may also provide advice on certain provisions to be included in the lease.
The tenant representative is usually paid a share of the commission the landlord agreed to pay the listing agent for the landlord. In some instances the tenant representative is pay by the tenant.
This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared