Don't go at it alone: Hiring a tenant representative can ensure that you get a fair deal

When entering into a legally-binding contract of any kind it is imperative that you have proper representation by a firm qualified to act in your best interest. For a tenant in the commercial real estate world, this firm is called a tenant representative. Unlike traditional commercial real estate brokerage firms, tenant representatives are always on the side of the tenant. Because they never represent the landlord in a real estate transaction, there is no conflict of interest and there is no shifting agenda. If you're thinking "Why do I really need my own representation?" think about this: How could one real estate firm possibly fulfill two opposing goals in the same local marketplace with total objectivity? Occasionally, a landlord may try to persuade you from using a tenant representative. It makes sense that they would prefer you walk into a transaction without the proper representation. After all, wouldn't your estranged spouse be thrilled if you waltzed into the courtroom for a divorce hearing without an attorney while they had one at their side?! One of the statements often heard when a landlord discourages a potential tenant from using a tenant representative is "using a tenant representative will cost you more money." This is simply not true. More often than not, the landlord has chosen to be represented by a traditional real estate broker, to whom he has already agreed to pay a commission. When a tenant representative brings a tenant to a transaction, the landlord's broker then shares his or her commission with them. There are no added costs for anyone. Additionally, because of the competitive environment that a tenant representative creates between competing landlords, the landlord is not going to risk the possibility of losing a tenant by adding a charge for the use of a tenant representative. Some tenants may be wary of using a tenant representative because they do not want to jeopardize the personal and/or professional relationship that they have with their current or potential landlord. Utilizing the services of a tenant representation firm will never jeopardize that relationship. Most landlords recognize that tenant representatives are professionals dedicated to helping tenants obtain the most cost-effective real estate transaction. They provide a professional buffer between you and your landlord. Tenant representation services quite simply level the playing field between the tenant and the landlord. When it comes time to renegotiate the renewal of your lease or go out in the market to secure new space you should not think twice about engaging a tenant representative. Only a tenant representative can offer you the invaluable service of ensuring that you are getting a fair transaction, at no cost to you, without any conflict of interest and with total objectivity. Eric Simonds, CCIM, senior consultant, tenant/buyer representation services at Conley Associates, Albany, N.Y.