Tenant FAQ

Why should I retain a broker to negotiate my lease?

The right broker will save you time, money, and headaches.  Tenant rep brokers create a competitive bidding environment for your tenancy, winning you the best terms while eliminating the stress of site selection and negotiation.  A good tenant representative prevents disastrous missteps, cuts down on real estate expenses, and alerts you to economic opportunities.

How do I choose the right broker?

As you interview perspective brokers, ask the following questions:

-Do you specialize in tenant representation?  Do you represent landlords?

-What property type do you specialize in?

-What market do you specialize in?

-How many years of experience do you have?  How many clients similar to us have you worked with?

Hire the most experienced tenant representation broker who specializes in your property type and market.

Do not hire a broker who represents landlords.  When brokers market to both landlords and tenants, there is a conflict of interest, and the tenant’s interest always loses (tenants tend to be the smaller client).  A tenant rep broker specialist will be free to negotiate more aggressively on your behalf.

Why should I hire Golden Group Real Estate?

Our brokers are all experienced tenant representation specialists, each focusing on a property type and local submarket of Chicagoland.  We offer superior market knowledge and aggressive representation free from conflicts of interest.

How is a tenant representative broker compensated?

The tenant does not directly compensate his broker.  If a transaction occurs, the landlord pays a commission to the tenant’s broker, arranged through a separate agreement.  Often, the landlord pays his leasing agent a fee and the leasing agent will share that fee with the tenant rep broker.  If you do not retain a broker, the landlord pays the entire fee to his leasing agent.

We don’t want to move, we intend to renew our lease, and we have a good landlord.  Why do we need tenant representation services?

If your landlord concludes that you are unwilling to leave, then your business will lose money on the renewal negotiation.  Even if you prefer to stay at your current location, you should signal to your landlord that you are considering alternative locations.  Retain a tenant rep broker, start the negotiation early, and ask your landlord to match competing offers from other landlords.  A good tenant rep broker will advance your interests while protecting your relationship with the landlord.

How long will it take to relocate my office?

The time required to complete the office relocation start to finish (site selection, lease negotiation, construction, and move) varies depending on the size and complexity of the transaction.  Look in your existing lease for option notice dates to be sure you notify your existing landlord in time.

In general, the following guidelines apply: tenants occupying 3,000 to 10,000 square feet need 6 to 10 months of lead time; tenants occupying 10,000 to 20,000 square feet need 8 to 12 months of lead time; tenants occupying more than 20,000 square feet need at least 24 months of lead time.

How much space should I lease?

We can help you answer this question more precisely over the phone or during our first meeting.  A general rule of thumb is to lease two hundred to two hundred and fifty square feet per employee.

More questions?  Contact us at (630) 805-2463 or troy@goldengroupcre.com.

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2 responses to “Tenant FAQ

  1. Pingback: Robust & Accurate Data is Essential for Effective Marketing | The Oak Brook Office Report·

  2. Pingback: Designate a Moving Coordinator to Supervise Your Office Relocation | The Oak Brook Office Report·

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