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What is Tenant Representation?
Tenant representation in the industry of commercial real estate, is where a licensed real estate agent exclusively represents a tenant’s interests in a lease or purchase transaction. This type of representation is the opposite of landlord representation, where brokers focus solely on the needs of a landlord.
Finding the perfect real estate solution for your practice can be difficult and time-consuming, especially for providers and administrators who manage all aspects of their practice. Tenant advisors help to facilitate that process by performing pertinent due diligence, finding and presenting the best property options for your practice during site selection, and ultimately, negotiating the most favorable terms possible for your office or business.
Expert Tenant Advisors perform the following:
- Helping you decide whether to renew a lease or relocate to a new property
- Identifying potential spaces based on your business needs and market research
- Investigating available properties and scheduling property tours and inspections
- Acting as a buffer between tenants and landlords so that clients can maintain a cordial and professional relationship with their current or future landlord
- Answering questions about a lease’s terms and providing general market knowledge
- Using their industry connections to get insights not readily available to tenants
- Guiding you through the entire commercial real estate process from start to finish
- Negotiating favorable terms for tenants, such as securing a tenant improvement allowances, free rent packages, lower lease rates, and much more
For anyone that does not specialize in commercial real estate, finding, negotiating, and leasing commercial space is a tedious and challenging process. But the importance of finding the right space with terms that will work for your practice both now and in the future cannot be understated, as it is one of the highest expenses for healthcare practices and has major ramifications for their success and bottom line.
Without a reliable tenant representative, tenants risk losing tens to even hundreds of thousands of dollars over the long term. The best tenant reps are knowledgeable experts in commercial leasing agreements and tenant rights— and they provide clients complete peace of mind when it comes to securing the lowest-risk strategy for their property needs.
As an advocate for their clients, tenant representative brokers are invaluable real estate experts that look out for your business and financial interests.
Landlord Representation Vs. Tenant Representation
You’ve likely heard of the terms “real estate agents,” “brokers,” and “realtors” used to describe the professionals who help people buy, sell, and lease property. For anyone planning on embarking on a commercial real estate transaction, it’s important to understand further distinctions in this profession—namely, the difference between landlord representatives and tenant representatives.
Landlord representatives, also known as listing brokers, act on behalf of property owners during the commercial leasing process. For instance, they work strategically on marketing the landlord’s properties and finding suitable tenants. As a result, they’re not only biased to act in the landlord’s best interest, but they typically carry a legal fiduciary obligation to do so. No matter the quality, location, or price of a property, the listing agent is obligated to represent it in a positive light to achieve the landlord’s financial goals, which include making as much money as possible in each transaction.
Tenant representatives, on the other hand, act as exclusive advocates for tenants. They provide market knowledge, advisory guidance, and assist with negotiations to secure the best terms possible for their clients. It helps that seasoned tenant agents often have long-standing relationships and industry connections—so they can get the most up-to-date information about available properties that tenants otherwise have no access to. In short, tenant rep brokers represent only their tenants’ best interests, not the landlord. In the world of commercial real estate, high dollar negotiations are commonplace. It’s imperative that healthcare tenants have an exclusive agent representing their position and protecting their practice.
The vast majority of brokers work exclusively on listings while very few represent only tenants. Others try to act on behalf of both, which creates an inherent conflict of interest as it is impossible to fairly represent opposing parties. Brokers that try to represent both parties, after all, may view landlords as more important long-term clients, and see tenants as one-off deals.
Who Needs Tenant Representation?
Tenant representation benefits virtually all healthcare practices, providers, and corporations regardless of their size, industry, and sector. That includes:
- Start-ups and Brand-New Practices
- De Novos
- Established Providers
- Sole Practitioners
- Group Practices
- DSO’s
- Private Equity Led Groups
- And More…
How Much Could You Save?
CARR’s Expertise
Our unprecedented track record of exclusive specialization in healthcare realty sets us apart from other tenant representation firms. CARR’s tenant rep agents will help you define your healthcare real estate strategy so that you can first, better accomplish your business goals; and second, do so stress-free.
No matter the nature of your specific medical real estate needs, you can rely on CARR. Our expert tenant-focused agents can help navigate a wide range of real estate needs in the healthcare industry, including:
- Lease Renewals
- Expansions
- Relocations
- Additional Office Locations
- Medical Real Estate Purchases
- Practice Acquisitions and Transitions
- Start-Ups
- De Novos
We’ll create a custom real estate strategy tailored to your unique needs and based on crucial market insight that you can’t find on the internet or through the vast majority of real estate agents. Our due diligence on your behalf includes:
- Demographics and Mapping
- Market Evaluations
- Financial Analysis
- Site Selection
- Purchase vs. Lease Evaluation
- Lease Analysis
- Lease and Sale Negotiations
- Assembling the most qualified team
- And much more
In short, we use our industry knowledge and comprehensive market analyses to get you the most value from a space, in the least amount of time, and with the highest level of confidence.
