Benefiting from industry specific knowledge…..
CONFUSED?!?!
Value of having an agent with a thorough understanding of your business in a real estate transaction – would be best for you.
Many space users do far too little selecting a tenant representative when they need help with their real estate commercial lease. Commercial leases in real estate are often highly complex and can be as long as 50 pages and even a 20 page lease often include language that is not commonly known by the space user. Just as a typical consumer has little or no understanding of unique terms and industry lingo of insurance policies, the insurance agent seldom understands the complexity of paragraphs such as “right to relocate or early termination” in a lease document.
One way to assure that you have a tenant representative that can provide the highest value to you is to choose an agent that has relevant and current knowledge of your industries unique needs and wants. This may be difficult in that many real estate agents (tenant representatives) do not have a lot of experience in one specific industry but rather represent clients across many industries. They may lack enough knowledge in your industry to provide meaningful and highly beneficial advice.
For example, we have worked with several insurance agents and have done site searches and
lease analysis on numerous insurance agency offices. This provides us more exposure to the specific issues that are important to most insurance professionals. Many insurance professionals choose to put their offices in a strip center or a retail oriented location. These facilities, because they are in retail facilities, tend to be some of the most expensive locations in all of real estate.Many agents believe that signage offsets the additional expense in this situation. Our analysis indicates that seldom can this be documented by the agent. In addition, many clauses in strip center locations contain language and rules that are not consistent with the practice of insurance. Also, there are clauses in the lease, like “right to relocate” that can be highly negative to the health of your insurance practice if you do not know that they exist and do not understand the impact they have upon your business. When choosing a tenant representative, look for experience in your specific industry, as well as the general geographic area in which you operate.
Finally, while many real estate agents earn their compensation through an introduction to a landlord, you should look for an agent who has a real understanding of the terms of the lease. This will not replace a need for an attorney to reviews the legality of the lease.
Often, the deal points of a lease include 10-12 items. Many real estate agents focus on the size of the facility and the target rent that you choose to pay & their services end there. You want an agent to represent you that will negotiate and understand all deal points relative to your lease.
If you review your lease and have questions that you would like to discuss with me, please feel free to contact me for complimentary consultation.
*Sonny Moyers is a Realty Advisor, Consultant & Real Estate Broker in the State of Texas. He is not a tax consultant or financial planner. Please contact your Financial Advisor or Accountant for your specific situation.
Contact Sonny today!
972-464-4100 (O)
469-261-5715 (C)
Sonny@SonnyMoyers.com
http://www.sonnymoyers.com/
