6 Reasons to Hire a Tenant Representative

May 15, 2007 by jack petrie.

Many tenants mistakenly feel there may be a potential savings to be had by forgoing an advisor when entering into a lease negotiation, particularly on a lease renewal. However, in the absence of an advisor, the commission monies (which are a line item in any transaction’s pro forma) revert to the landlord’s agent or management company. In essence, you are paying for an advisor whether you choose one or not.

From our experience exclusively representing tenants, engaging an exclusive advisor does the following:

1. Protects you from any brokerage claims of third parties claiming to have represented you or a prospective property,
2. Provides industry expertise that allows you to preserve internal company resources (i.e. “time”) for your core business,
3. Provides an objective, unbiased voice in comparing competitive properties and scenarios,
4. Provides a process that creates leverage for your tenancy and identifies all potential occupancy costs,
5. Gives you greater credibility and leverage with the landlord community,
6. Attracts the top tenant representation available.

To conclude, the New York City lease is a formidable document crafted by the landlord’s leasing team to protect the landlord. It is the summary of a large set of historical contingencies that gradually attempts to close any and all tenant loopholes or ambiguities. Each clause in the lease has monetary impact. Do not attempt to tackle this one without adequate protection in the form of an objective, tenant advisor.

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