Why do I need Tenant (Buyer) Representation?
For the same reason you would not have one attorney representing both parties of a legal transaction or dispute. Real estate agents, like lawyers, are obligated to represent their clients with fiduciary care. Opting to negotiate directly with the Listing Agent of a property or allowing a Listing Agent to serve as dual agent may seriously impact the economic terms of your transaction.
Why The Charis Companies and not some other real estate firm?
The Charis Companies only represents Tenants and Buyers. Unlike the “full service” real estate companies, we never represent landlords. Even for buildings we own, we use third party real estate firms to market the property. Consequently, your financial and business goals are our only concern.
The Charis Companies is free to aggressively negotiate for savings and lease terms that will provide the greatest benefit to our clients.
What’s the most common mistake a tenant makes when negotiating space for lease?
The biggest mistake buyers and tenants make is not developing legitimate alternatives to their first choice, whether they are interested in purchasing, relocating to new space or renewing where they already are. We often hear, “I don’t want to move and plan to renew my lease for another term." Even if you don’t tell your Landlord, conclusions are often drawn by your actions or inactions. Once your Landlord is comfortable with your perceived intentions, negotiating leverage is minimized. Even tenants who have no reason to move must develop realistic, executable alternatives to their current situation.
How is The Charis Companies compensated for its services?
You don’t spend a penny to use our services. In most cases, the Landlord pays the leasing agent a fee and the leasing agent shares that fee with The Charis Companies. In the event that you do not have representation, the Landlord pays the entire fee to the leasing agent, so leasing agents are highly motivated for you not to have representation.
Be sure to keep in mind where leasing agents’ loyalties lie as they represent the property. All listing agents’ jobs and fiduciary obligations are to get the best possible terms for their principal: the Landlord. The Charis Companies has the obligation to negotiate the best possible deal terms for you.
We don’t want to move and intend to renew our lease. Why would we need The Charis Companies' assistance?
Even in a renewal, the client deserves the best deal, not just a “fair deal”. Most Landlords hire articulate, personable and professional listing agents to negotiate the highest returns for their property investment. The higher the lease rate and terms, the better the bottom line is for the building owner. Without capable representation, the “fair deal” you strike bargaining directly with the Landlord’s listing agent is generally not your best deal available.
The key to a successful negotiation is creating competition between your landlord and surrounding landlords in the area, while maintaining a controlled and organized process.
How much time do I realistically need?
Market conditions, the size and complexity of the transaction and renewal option notice dates all help determine the optimal time for initiating the process. Importantly, Landlords generally know where there are vacancies in the market, how much time is needed to upfit shell space, build new construction and relocate furnishings and equipment (not to mention creating a new space plan and negotiating a new lease). Tenants who wait too long to start an orderly search and evaluation of the market, even if predisposed not to move, risk losing valuable negotiating leverage because of time constraints.
Except under very unusual circumstances, a minimum of six months is recommended for The Charis Companies to achieve best execution when NOT considering new construction, with a minimum of 15 months WHEN new construction is being considered.