Tenant representation is an important component to the well-balanced procurement or leasing of commercial space

Tenant representation is Jayson Montoya’s core-competency as a broker.

In commercial real estate office leasing, there are generally two parties in a lease transaction: the landlord and the tenant. In the past, landlords had a leasing agent to represent them while the tenant was left to fend for themselves, with no professional representing them or their fiduciary interests. As an occupant of office space in today’s fast moving market, it is imperative that companies engage a tenant representative or “tenant rep” to exclusively represent their best interests on a lease transaction.

A tenant rep will be the tenant’s advisor in the transaction and serve only the tenant’s needs. A good tenant rep will not simply show their client spaces that fit their needs, but also will devise the optimum real estate strategy to meet their client’s current and future real estate goals. Hiring a tenant rep that specializes in the submarket which their client is considering is critical because they will offer unmatched market intelligence of that area, resulting in maximum occupancy cost savings for the company.

Landlords know that an unrepresented tenant is much less likely to relocate or exercise their other options, which hurts a tenant’s leverage in negotiations or renewal renegotiations. They also understand that most tenants only review/negotiate new leases every 5-10 years and are not abreast to current market conditions. By engaging a tenant rep as an advocate, the landlord will respect the tenant’s position and understand that they are exercising all of their options in the market. This position forces landlords to compete for a company’s tenancy. In addition, professional landlords know where to take advantage of tenants, but a good tenant rep knows where these hidden risks lie.

In today’s busy world, a good tenant representative will save his or her clients an invaluable amount of time and money on real estate, allowing executives to focus on what is important–running their core business.

Having served dozens of clients with local expertise and guidance to deliver office solutions tailor-made for their needs. Tenant representation is an important component to the well-balanced procurement or leasing of commercial space as it enables the tenant to leverage access to market information, data and savvy for a fair negotiation with the landlord. As a downtown-specific tenant representative, Montoya considers the following elements to be paramount for successful representation:

  • Assess tenant business needs, including growth plans
  • Identify a diverse set of options, enabling the tenant to drive the decision journey
  • Deliver to the tenant specific data and insights, including comparable transactions to assist in forecasting,benchmarking and decision making
  • Negotiate on behalf of the tenant, adding value with creative guidance towards objectives, while empowering the client to participate in the process
  • Simplify the leasing or purchasing process, limiting the operational bandwidth required to successfully close the deal
  • Follow up with the client and maintain service throughout occupancy in preparation for future needs