Few commercial and industrial real estate brokers have successfully mastered the techniques or have knowledge of understanding, how to develope and successfully implement corporate restate strategies.
3. Engaging an Exclusive Tenant Representative, “ETR”, acting on behalf of the tenant/buyer will provide the client with one objective opinion on all alternatives and not one potentially with self-serving points of view. It is important that each alternative be evaluated without bias using the same requirements and methodology. . .and because the ETR will be compensated in the form of a standard leasing or sale commission, regardless of which property is selected, the individual will not be biased. If a better alternative was identified in the late stages of negotiation for a different building, an ETR will better promote this solution versus a Non-Exclusive Tenant Representative with reverse incentives. Objectivity Topic 1: << Previous Slide Next Slide >> Topic : 1 Topic : 2 Topic : 3 Topic : 4 Topic : 5a Topic : 5b Topic : 6 Topic : 7 Topic : 8 Topic : 9 Topic : 10
4. Effective ETR’s will prioritize their efforts towards the most productive assignments, those in which the agent will earn a commission by representing a client in evaluating all alternatives in the relocation study. In being retained as a tenant’s exclusive representative, the selected real estate broker becomes directly accountable to its client. Without this kind of agreement, a tenant cannot expect and often does not experience the responsiveness, dedication, and accountability, which an exclusive representative provides. Accountability Topic 2: << Previous Slide Next Slide >> Topic : 1 Topic : 2 Topic : 3 Topic : 4 Topic : 5a Topic : 5b Topic : 6 Topic : 7 Topic : 8 Topic : 9 Topic : 10
5. An effective ETR will save the client significant management time as well as money. The agent should develop and provide the client with detailed market data, in-depth analysis and lease or purchase work letter review. With proper reporting, this will allow the client to only devote time toward the decision-making aspects of the project. The ETR’s involvement will also effectively screen the multitude of broker and ownership calls and proposals that often interfere with the client’s normal business. Efficiency Topic 3: << Previous Slide Next Slide >> Topic : 1 Topic : 2 Topic : 3 Topic : 4 Topic : 5a Topic : 5b Topic : 6 Topic : 7 Topic : 8 Topic : 9 Topic : 10
6. In almost all transactions, the agent’s services will not be a tenant cost. The real estate broker will be compensated by building ownership in the form of a standard lease or sale commission included in the ownership’s operating budget and the developer’s pro-forma. Added Value at No Cost Topic 4: << Previous Slide Next Slide >> Topic : 1 Topic : 2 Topic : 3 Topic : 4 Topic : 5a Topic : 5b Topic : 6 Topic : 7 Topic : 8 Topic : 9 Topic : 10
7. Comprehensive Expertise The client should select a competent real estate professional prior to surveying the market place. A professional broker’s varied experience is a critical factor in assuring its client that the best property will be selected and the best transactional terms will be negotiated. An experienced ETR and his/her firm can provide “value-added” services in the relationship with their client as opposed to working with brokers that view the market as just showing a customer buildings and acting no more than merely serving the customer as a “taxi driver” with a real estate license. The ETRs market knowledge is essential in effectively qualifying alternatives for further consideration. Further, that individual’s knowledge of current market conditions, based upon other negotiated leases, insures that the best economics will be achieved. Using a broker merely because they were the first to bring that space to the client’s attention may very well commit the client to use an inexperienced or incompetent individual. By virtue of their inexperience or lack of effectiveness, many brokers are not qualified to handle a lease or sale of consequence. Topic 5a: << Previous Slide Next Slide >> Topic : 1 Topic : 2 Topic : 3 Topic : 4 Topic : 5a Topic : 5b Topic : 6 Topic : 7 Topic : 8 Topic : 9 Topic : 10
8. Negotiating Experience The experienced broker is a professional in the business and knows those areas and issues where a landlord/seller will be willing to compromise. When a broker is a tenant’s exclusive representative, an owner realizes the need for straight-forward discussion and bottom-line negotiation. The ETR tries to create leverage in the market place with property owners for the client they represent. Topic 5b: << Previous Slide Next Slide >> Topic : 1 Topic : 2 Topic : 3 Topic : 4 Topic : 5a Topic : 5b Topic : 6 Topic : 7 Topic : 8 Topic : 9 Topic : 10
9. Real Estate law is very complex. If a tenant elects to work with multiple brokers, that tenant is more vulnerable to legal conflicts resulting from its proper or improper registration with various brokers, buildings and building ownership. An exclusive agent minimizes the potential for lengthy and costly law suits. Minimal Legal Entanglements Topic 6: << Previous Slide Next Slide >> Topic : 1 Topic : 2 Topic : 3 Topic : 4 Topic : 5a Topic : 5b Topic : 6 Topic : 7 Topic : 8 Topic : 9 Topic : 10
10. Market Clout & Extensive Industry Contacts Hiring an ETR on an exclusive basis will indicate to developers and the brokerage community that the client is a serious prospect. More time and attention will be given to the serious prospects as well as more attractive proposals. A good real estate agent will have extensive contacts with the development and brokerage communities. Those contacts should be helpful to the client in expeditiously and effectively reaching an ultimate decision. Topic 7: << Previous Slide Next Slide >> Topic : 1 Topic : 2 Topic : 3 Topic : 4 Topic : 5a Topic : 5b Topic : 6 Topic : 7 Topic : 8 Topic : 9 Topic : 10
11. A knowledgeable agent will provide an objective evaluation and analysis that may include detailed comparisons through the use of theoretical economic models or proposals on specific leasing and development opportunities. Lease or Ownership Analysis Topic 8: Topic : 1 Topic : 2 Topic : 3 Topic : 4 Topic : 5a Topic : 5b Topic : 6 Topic : 7 Topic : 8 Topic : 9 << Previous Slide Next Slide >> Topic : 10
12. Selection & Coordination of Other Professionals An exclusive agent can assist the tenant or purchaser in the selection of other professionals that are often employed in the relocation team. Essential Team Players including: Space Planners Industrial Engineers Architects Environmental Consultants Legal Counsel Topic 9: Topic : 1 Topic : 2 Topic : 3 Topic : 4 Topic : 5a Topic : 5b Topic : 6 Topic : 7 Topic : 8 << Previous Slide Next Slide >> Other Specialists: Topic : 9 Material Handling Logistics Telecommunication Financing Energy Topic : 10
13. Don’t Be Fooled By the Competition and Who They Really Represent! Many large National and Regional real estate brokerage companies have extensive ties with major owners of properties. As their fiduciaries they are intertwined with representing those parties in exclusively marketing and managing their properties. Several may own their own property or may have hidden interests that should be divulged. This may result in the possibility of “trying to light a candle from both ends”. << Previous Slide Next Slide >> Topic 10: Topic : 1 Topic : 2 Topic : 3 Topic : 4 Topic : 5a Topic : 5b Topic : 6 Topic : 7 Topic : 8 Topic : 9 Topic : 10