As a tenant rep, my objective is to help my clients get the best terms on the ideal space. I create value by finding value. But in today’s world, where we can buy just about anything on Amazon, many people assume leasing space should be just as easy as buying socks. In some cases, sure—you can do it yourself. But more often, you need someone who can cut through the noise, identify hidden pitfalls and help you make true apples-to-apples comparisons. I save my clients time, money and headaches!
A Real-World Example
I recently got an inquiry on a sublease I was marketing. The space was 3,609 sq. ft. at $18.50 per sq. ft. (triple net), with expenses of $10.50. I told the prospect the rent came to $8,721.75 per month. Their response? “But the ad says $5,800.”
Obviously they overlooked the operating expenses. They were clearly included in my description, but Costar/Loopnet, which dominates online real estate search could stand to be a lot clearer about pricing. Sometimes it includes operating expense, other times it does not. Same goes for electric and janitorial. And don’t forget loss factor. My property has an 18 percent add-on for common lobbies, corridors and restrooms. The tenant pays for 3,609 sq. ft. while the space actually measures 3,058 sq. ft.
Deceptive? Possibly. Standard? Absolutely.
It’s been done this way for decades, and it isn’t changing any time soon. And you can’t blame landlords and brokers for structuring their pricing to generate the most clicks. Unlike Amazon, which offers full price transparency, online Commerical Real Estate sites do not. Searching for space online by price is “virtually” useless.
Ken’s 2021 video on price transparency. I couldn’t have said it better myself. As it turns out, I did.
Real Estate vs. Socks
Buying socks online? Easy. Six pairs of Columbia for $17.17, or six pairs of Puma for $10.59. You know the cost per pair, you compare, you decide. That’s a clean apples-to-apples choice.
But office or industrial space? Totally different game. Every building and each space has a unique location, layout, image and rent structure. There are also hidden obligations. Some leases stick the tenant with A/C repair or replacement. Here’s a new one – some leases now require the tenant pick up the landlord’s hurricane deductible—which could mean up to four months’ rent out of pocket.
These aren’t the kinds of surprises you want after signing on the dotted line.
Then there is the matter of timing. Some spaces get leased by the time they hit the internet. Others may be on the market, but the agents haven’t taken the time to post them. Finally, one of my major pet peeves: the virtual property sign – some brokers keep spaces online long after they’ve leased, hoping to get leads to bring to other properties.
Why You Need A Pro
As I always say: you don’t know what you don’t know—and what you don’t know can hurt you.
• I know which landlords to approach and which to avoid.
• I break down true occupancy costs so you can compare spaces as clearly as socks on Amazon.
• I understand the hidden traps that can cost you for years.
• Sometimes it’s not what you know, it’s who you know: I’ve developed strong relationships with owners and agents over many years. Through these realtionships, I can uncover opportunities that others can’t.
And best of all? My fee is paid by the landlord. For you, representation usually costs nothing. Bad socks you can return. A bad lease? That mistake sticks and compounds. By the way—I’m wearing the Columbias today. And yes, they were worth the extra buck a pair.
