5 reasons why your business needs a commercial tenant representative | HKC Property Consultants

5 reasons why your business needs commercial tenant representation

Commercial Tenat Representative

Research shows that upwards of 80% of companies fail in their first year of business. So how do you increase your chances of joining the 20% that see steady and sustainable growth well beyond their first business birthday?

It’s not luck. Nor is it working long, hard hours or having access to an investor with a crystal ball.

The key to success in your business’s first year is recognising your strengths and delegating the rest to experts who can help you achieve your business goals. In this post, we’ll highlight how a commercial tenant representative is the ideal person to have in your corner, diligently acting as a safeguard against risks to your bottom line.

Tenant representation services: what you need to know

Firstly, what exactly is commercial tenant representation?

A commercial tenant representative is an expert who works on a business’s behalf to negotiate the terms of their commercial lease. Tenant representation services include a number of valuable, time saving activities such as helping you scout for a location, organising property inspections, negotiate commercial lease terms and navigate the complex lease terminology on your behalf.

All of these tasks can be performed by you, of course, if you choose to. But taking on any task that requires years of experience to do properly opens you up to numerous risks that can threaten the profitability of your business.

So, how will commercial tenant representation help me?

1.    They minimise location-based risk
You might think that launching your business in a thriving CBD will bring lots of foot-traffic to your business. Without prior research and knowledge of local competition, however, you’ll likely see your business up against established businesses that already have a great rapport with locals and a loyal customer base. On top of that, you’ll need to choose your location based on growth and further physical expansion. A commercial tenant representative will safeguard your business against the risk of choosing the wrong location, as they’ll have a thorough knowledge of the best place for your bricks-and-mortar business to grow and retain a customer base.

2.    They save you time and money
We all know that time equals money in the business world. So how much is an hour of your time worth? If you’re spending up to 10 hours a week scouting locations and deciphering the language of a commercial lease, that’s time you could be spending on what you do best – optimising your business operations for profit. On the other side of the coin, you could be rushing through the process, spending too little time on finding the right location and finalising the terms of your lease.

Negotiations and preparations can take weeks. If you are doing a fit-out building permits need to be obtained and new constructions can easily take from 9-12 months. What will happen if you don’t safeguard yourself against complications or hold-ups, or your commercial lease starts before a new fit-out is complete? It can and does happen.

Get the best tenant representation, and your advisor will spot a logistical snag a mile away. They’ll act as a body guard for your time and money, maximising both so that you can see a sound ROI from the start.

3.    They help you focus on the bigger picture
Many tenants will often think of a short-term solution to a long-term strategy. It’s important to find a commercial property that fulfills your business needs in the start-up phase, but be sure to factor in what the future may hold in 5-years-time. Do you know how much square footage you’ll need, and if your new space will accommodate renovations or a change in floor plans? What about parking needs as you attract more clientele? When you work with an experienced tenant representative, they’ll offer incredible insight into the types of facilities and lease terms you’ll need to allow your company to expand, downsize or relocate as needed.

4.    They negotiate on your behalf
It can be tricky to understand the complex terminology that forms your commercial lease. If you don’t verify the details – like terms of rent, outgoings, option rights, and other clauses – you could end up making some very costly errors. Working with a commercial tenant representative maximises your chances of negotiating best lease terms. They have all the necessary knowledge to help you decipher and negotiate a commercial lease agreement, and will be able to guide you in the right direction.

5.    They have an eagle’s eye for detail
One of the most common errors businesses make when they choose to work on their own is failing to identify problems with the premises. Even if your business’s new home looks fit to be occupied and was vacated recently, building codes may have changed or the infrastructure may no longer be adequate. It’s best to obtain third party counsel to ensure your landlord guarantees the space meets all OH&S requirements, as well as zoning and commercial property laws.

For even more information on what a commercial tenant representative can offer you and your business, see our earlier blog, Save time and money with a commercial tenant representative.

An expert, independent tenant representative will always put the needs of the tenant first. Do your business a favour and help guarantee its future with the very best commercial tenant representation services. At HKC Property Consultants, our professional, personable advisors are experts at saving you time and money. Get in touch today.

Kevin Cassidy (BSc) Hons
By: Kevin Cassidy (BSc) Hons

Kevin has been involved in Real Estate on an international scale spanning from Ireland, the United Kingdom to China & Australia. Originating from Ireland, he completed an RICS accredited Bachelor of Science degree in Property Investment & Development. Following this Kevin focused the initial years of his career in Commercial Property Management whereby he managed a diversified property portfolio throughout the UK to include residential apartments, office buildings, shopping centres, retail parks, standalone retail units & industrial warehousing. Managing these varied assets in some of the major cities in the UK gave him vital experience within the Real Estate industry.