Denver business space users have two options when considering hiring a leasing representative. They can work with an exclusive tenant representation firm or a full service commercial brokerage. Both can offer experienced staff and support, although you must consider this: Corporate real estate decisions should never be subject to conflicts of interest. However, that is what often occurs when representatives from full-service commercial real estate companies assist prospective tenants.
Exclusive tenant representatives, such as ProTenant perform extensive due diligence on occupancy scenarios from their clients' perspective; whereas full-service representatives typically use ready-made, "off the shelf" building analyses prepared for them by their own company. Additionally, the information being supplied is the same for every prospective tenant, not individually crafted according to each tenant's business goals.
This lack of unbiased scrutiny puts at risk the tenant's best interests, often leaving out valuable real-time market information about a particular building. It encourages a less than thorough overview of every possibility.
The challenges for Denver tenants represented by their landlord's company grow even greater when differences occur between a landlord and a tenant. Lease audits, for example, are essential components of a proactive real estate plan, allowing tenants to carefully examine ongoing occupancy expenses. Collectively, tenants around the country save millions by uncovering hidden value found in lease audits. It is difficult for a full service advisor to challenge a landlord that may represent an income many times greater to their firm than the tenant's single transaction.
Just how apt would a full-service broker be to even suggest lease language the could be used to adequately protect a tenant when their own company is responsible for enforcing landlord's rights? Surely an exercise this vital is best served by a tenant expert with fiduciary responsibility solely to the tenant and in-depth understanding of their business.
Independent tenant representatives are much more capable of integrating their client's business strategy with their real estate needs. Full-service company models are designed to build rent rolls and prevent tenant turnover. In contrast, independent tenant representatives structure their business in the mold of a consultant, testing space scenarios against long-term business projections and integrating staff growth, business processes and logistics needs, among many other necessary business functions. This level of attention is nearly impossible to find under the corporate structure of full-service firms that burden their brokers with a large client list and disparate responsibilities.
Full-service Denver commercial real estate companies are heavily leveraged in the management business, making landlords their primary concern. Independent tenant representatives do not collect revenue from property management contracts or recurring lease payments. Instead, exclusive tenant representatives focus only on ensuring that office space is a productive, efficient contributor to their clients' success.
Ask Protent about how their boutique approach to tenant representation can help you.