Why Tenant Representatives are Essential for Expanding Retailers
As a retailer, you know the ins and outs of your business better than anyone else: the business model, the strategy, the target demographics, etc. This is your industry and expertise, after all. When business is booming and an additional location is on the table, this should be the most exhilarating time for a business owner. However, too often, a retailer becomes overwhelmed with the leasing process and finding a space and neighborhood that adequately suits their needs. With tenant representation services, you are bringing in the experts on retail leasing, commercial real estate and the market – this is their industry and expertise. Here are just a few reasons why a retailer should enlist a tenant representative to find the ideal spot for their next retail space:
NO COST – Brokers’ services are paid through the listing agent as part of the normal brokerage fee sharing arrangement.
MARKET KNOWLEDGE – Brokers know the market – where targeted clientele is shopping, standard market deal points and upcoming changes in shopping patterns due to proposed developments coming to market.
DATA – Brokers have access to demographics, traffic counts and comparable lease data.
MORE CHOICES – With an exclusive broker, you will see ALL available properties, on and off the market.
INFORMATION DISCLOSURE – Your broker can disclose information concerning the owner’s motivation, prior transaction data or other information that the listing agent will not disclose.
SIMPLIFICATION – Your one point of contact. No keeping track of each broker on each property, allowing you to maintain focus on your business.
COST SAVINGS – Proper structuring of a transaction can save you hundreds, if not thousands, of dollars. A good broker knows lease and contract language and how to change it in your favor. A broker can suggest creative clauses, such as options to buy, termination rights, renewal options, free rent periods, operating expense exclusions and many other critical clauses to save you money and give you flexibility.
For a list of the merchants Rappaport assists through top-tier tenant representation services, please visit our Retailer page.