The Basic Protection You Want From Your Tenant Representative And Why Most Won’t Provide It
June 11, 2014 | Posted In Insider's View, News & Resources
By: Carrie S. Holstead, President & CEO, Carrie S. Holstead Real Estate Consultants, Inc. / ITRA Global Pittsburgh & Vice Chairman of the Board, ITRA Global
It seems simple. You want a tenant representative that will protect the best interests of your company, but you may be surprised to learn that most commercial real estate firms won’t agree in writing to provide this protection without having to carve out many exceptions.
The traditional model approach of commercial real estate firms is that of listing agent for landlords from which their firm derives an estimated 70% of its revenue. When also providing tenant representation services to companies interested in buildings listed by their firm, they become a dual agent which is not permitted to represent the best interests of the tenant, and therefore the tenant gives up the right of loyalty from its tenant representative.
To protect your firm, before entering into a contract with a tenant representative, ask him/her to identify all the buildings represented by their firm, and understand that your company will not have a loyal advocate representing your best interests if it enters into lease negotiations at any buildings on that list.
Carrie S. Holstead Real Estate Consultants, Inc/ ITRA Global represents users of corporate space. If your organization needs to expand, contract, merge, relocate, or renew an office lease(s), or is interested in a sale-leaseback, contact Carrie Holstead at 412.833.1030 or carrie@carrieholstead.com. To stay informed or see our work experience, conflict-free services, and media appearances, visit www.carrieholstead.com .
