How important is picking a specialized realtor?

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/

Blog Entry dated 3/25/2009 2:49 PM

Survival Tips In Tough Times – Commercial Lease Savings!

The current economy demands that business owners and large corporations alike, look for ways of cutting costs. One major way to cut cost is to look at all of your leases and determine if you can re-negotiate the lease with your landlord. Many think this cannot be done until the end of the lease. This is not the case. Landlords are desperate to keep Tenants in buildings and hang on through these difficult times. The secret is to find what helps the Landlord and what helps you. Sometimes, an extension of your lease for a few years will allow the Landlord to re-negotiate the existing terms of your lease and give you rent relief. A great idea if you understand the dynamics of what the Landlord needs right now.

If you are not sure what to do, don’t be paralyzed with indecision. Get your lease documents and any correspondence that you have had with your Landlord organized. Contact the Leasing Representative for your building anonymously and ask for current rental rates for similar space to yours. Go on the web and find your building or Landlord site to determine what they are publishing as current rates and availability. Then, when you are ready, contact your Broker or Tenant Representative and ask them their opinion. Be factual and calm. Don’t let the emotions of re-negotiation cloud your vision. As someone who holds a degree in Psychology – Human Behavioral Theory, I can tell you that in these moments it takes patience and thoughtful analysis, not fear.

If your Broker or Tenant Representative tells you that you have no chance, don’t accept “no” for an answer. The Tenant Representative that you dealt with may have a relationship with the building that they do not want to jeopardize by bringing up such a sensitive issue as a re-negotiation. Above all else, don’t call the building representative yourself. They will only hear you pain, not your need. They will also tend to say “no” without thought to the positive aspects for all.

If you get nowhere talking to your Broker or Tenant Representative, or would like to have a one-on-one no obligation chat with me about your situation, give me a call. We can explore the possibilities. If you are in the State of Texas, I can act as your Tenant Representative and the building will often pay my fee. If you are outside of Texas I can work as your Consultant. We can discuss any fees if you determine that my services would be of benefit.

Sonny Moyers
Realty Advisor & Real Estate Broker, State of Texas
Cell Phone: 469-261-5715 or Email: Sonny@SonnyMoyers.com