Why Now is the Perfect Time to Hire a Tenant-Only Real Estate Advisor
The Boston commercial real estate market is facing something it hasn’t seen in about a decade: a receding demand. As a result of the coronavirus pandemic, many companies are weighing their options and considering having staff work from home for an extended period of time, or even permanently. The near-term demand in the commercial real estate market will undoubtedly be less than it has been in recent years, when demand for space was at its peak. But for companies that are planning to return to the office, a pullback in demand will present an opportunity for increased leverage in negotiations with landlords. That’s why it’s more important than ever to have a tenant-only broker on your side.
What They Do
A tenant-only broker serves an important role as an advocate for occupiers throughout the leasing process. Instead of navigating the relationship with a landlord on your own, a tenant-only broker is a necessary liaison to protect your interests as you secure a new space or determine whether to renew your current one. They’ll assist you as you assess your needs, and determine the next steps in your process.
An Unbiased Opinion
There’s an inherent conflict of interest that exists for advisors who represent both tenants and landlords. Now, that conflict is magnified. A tenant-only advisor who is able to leverage multiple landlords against one another and maintain their client’s confidential desired outcome is able to deliver the best results. Full-service firms who promise their landlord clients the highest possible rents and their tenant clients the lowest possible rents will be in a tough position to deliver on both. With most firms having millions of square feet of listings in Boston, it’s important to gauge where allegiances may lie at the end of the day. That's why receiving unbiased advice from a source you trust is so vital.
The Importance of Confidentiality
Tenants may know their desired outcome before they kick off a project; however, keeping that plan private is critical to maintaining negotiation leverage. A tenant-only advisor avoids being in a position of jeopardizing its client’s confidentiality because he or she has no landlord clients. With no current or future business in the form of listings, tenant-only advisors can more efficiently leverage the market and create true competition for its tenancy without trying to tread softly in negotiations with landlords.
In a commercial real estate market facing unexpected twists and turns, a tenant-only real estate advisor is a tremendous asset for any company or organization. A trusted member of Cresa's team can assist you as you navigate the tumultuous market.