As an office tenant rep real estate broker, what are some unique ways to provide value for a prospective tenant?
I will be joining a commercial real estate brokerage and will likely begin by representing office tenants. What are some unique ways to provide value for potential tenants that set you apart from the competition? Thanks
From my experience working for a retail and office landlord and as being a prospective tenant myself, I've been utterly appalled at the level of service, especially among the retail brokers. They sell you the world, but it seems like they spend nearly all of their energy winning business and not actually doing the meat of their work.
The following is my stream-of-consciousness regarding both the landlord and tenant reps I've dealt with recently, with the overarching theme being laziness:
My biggest complaint with the retail brokers is laziness. They take the path of least resistance and are not proactive. For example, we had a retail vacancy come about in an absolutely sick location. Our broker, however, hyper-focused on one tenant that was already in their database rather than the dozens of other potentials. When that deal fell through a month into negotiations they had literally zero back-ups. Also, these brokers are terrible--horrible--with follow-up and idea generation. We've been the ones making suggestions for great tenants and DEMANDING that they follow-up when they won't or when they half-ass the following up. It's f*cking infuriating.
As a prospective tenant (I'm currently looking for retail space for a business I'm setting up), I've been utterly appalled at the complete and utter laziness of the landlord reps. I contacted a rep who has signs up all over the area--I asked him about a particular location. He said it wasn't available because a tenant they had just signed had a no-compete clause. He abruptly said "good-bye" and hung up--instead of pitching to me the at least 3 other locations he was representing within the neighborhood which could have easily worked for my needs. If I had been the landlord I would have fired that guy's f*cking ass right there (there's a reason the guy has signs everywhere--he can't lease the space he markets!). I can think of at least 3 other landlord reps who despite many months of vacancy and a great tenant I've been pitching to them will simply not follow-up and get back to me. It's appalling.
Laziness. Utter laziness.
As for our office landlord brokers, they have been better. But my main complaint is that they spend an inordinate amount of time generating business for themselves and not doing their actual job. Probably 75% of the tours we do ourselves since our brokers never seem to be available.
One of the better retail tenant reps I've spoken with recently knew EVERY vacancy and innumerable potential vacancies (those places where they've heard through the grapevine that a tenant is struggling). Those "off-market vacancies" can double or triple the potential opportunities of a tenant. To me, this is the epitome of being proactive. If you can keep your finger to the wind and really, really know your geographic areas you can add a lot of value. Also, following up on leads is so key. And keeping your client informed regularly is especially nice. We've had to demand regular contact from our brokers. If you can contact your client once a week--say, each Wednesday at 10 am--and give him/her/it an update with all of your (pro)activity it will be very valuable.
opus1723 , this is hands down what you need to do. +1 SB for Virginia Tech.
So many brokers look at themselves like salesmen. I understand why - you need to have that salesman-like tenacity to succeed and at the end of the day you're cold calling, making deals, etc. - but you aren't just out there slinging medical samples to doctors. As a tenant rep broker, you are effectively a consultant on one of the most important, and expensive, decisions a CEO or company president will make - where to locate the business.
If they had the time and the knowledge, they would simply make that decision themselves, but they hired your firm for insight that goes beyond what they could google or make a few phone calls on themselves. That 4% you make isn't for reading whatever PDF ads come in your email or seeing whatever vacancies are written about in the local business journal - the CEO can read flyers and articles just as well as you. Your commission is for insight that the CEO doesn't have - the off market vacancies VT4ever talked about, the rumors, the massive database you build of when certain tenants' leases expire, etc.
Don't mentally frame yourself as a salesman. Think of yourself as a site selection and business solutions consultant for the tenant. Know their business. Know what will make them successful.
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