Frequently Asked Questions

Why do I need a broker if I am planning to simply renew my lease? After all, my Landlord and I have a good relationship.

Your landlord maximizes his profits by charging the most rent possible. Until you create competition for your tenancy and retain an experienced broker, your landlord will consider you a captive tenant willing to pay asking or above-market rents. Our role is to create leverage with your landlord by identifying other alternatives, thereby securing the best lease terms possible.

Why do I need a ‘Tenant-only’ broker? Can’t I just work with the Landlords?

For the same reason you wouldn’t retain one attorney to represent both parties in a transaction, whether ‘friendly’ or otherwise. TRG Advisors only represents tenants. Unlike other real estate companies, we never represent landlords, and our only commitment is to your financial and business goals. Because of this we are free to aggressively negotiate for savings and tenant rights that your firm will benefit from, without being concerned about landlord relationships.

Is the “Conflict of Interest” issue that important?

Most definitely YES, since 99% of real estate firms generate the majority of their revenue from landlord representation. As such it would be unwise for them to negotiate aggressively for a tenant, and risk their profitable relationship with the landlord. Additionally, oftentimes the broker who is attempting to represent you actually represents the landlord. Individual brokers within these companies will represent themselves as ‘tenant-only brokers.’ Yet the firm’s management and fellow brokers’ landlord relationships pressure their allegiance and objectivity. We have no such conflict of interest since we only represent tenants like you.

When is the right time to begin looking for new space?

It depends on the market conditions and the size of your requirement. Typically, in a stabilized 90% occupied market, the best time to begin looking for a 1,000-5,000 SF requirement is 4-6 months before your lease expires; for 5,000-15,000 SF requirements, 6-12 months; and for requirements in excess of 15,000 SF, 12-18 months is the most effective time frame. When tenants have time on their side, they are not at the mercy of landlords and are not considered by them to be a "captive audience". The best deals are struck far in advance of the target lease commencement date. Many corporate executives miss the proverbial boat and all the potential incentives because they have begun negotiations too late in the process and have lost their position of strength. When landlords know your timing is tight they will almost always exploit this perceived weakness and capitalize on it by demanding their asking terms and being inflexible when negotiating the lease document.

Can a Tenant Representative negotiate a renewal on our behalf with our current landlord?

Yes, and at no cost to you. Since commercial real estate commissions in broker assisted transactions are typically built into the purchase price or rental structure, there is no direct cost to you for using our services. We combine our business expertise and an innovative way of thinking to help address your real estate needs and plan for the future. Our team invests the time and energy necessary to understand your business and help ensure the space you lease meets and exceeds those needs.

Sophisticated landlords often recognize and compensate Tenant Representatives when negotiating renewals because if the tenant representative relocates the tenant, the landlord's cost to acquire a new transaction will likely be much greater. Some of the landlord's costs include a full tenant improvement allowance to retrofit the space for a new tenant and a new use, rental losses during the marketing of the space and construction of the improvements, and marketing costs which may include a full commission as opposed to a lesser fee typical of renewal fees. Landlords almost always prefer to pay a modest commission to retain a tenant than to re-let vacant space. The clients, of course, benefit because they get the education of what other spaces are available, to know they have made the right decision to stay, and they get the knowledge of a Tenant Representative in negotiating the best terms on their behalf.

If there are fewer brokers, won't I get a better deal with the landlord?

Actually, no. Tenant Representatives and co-brokers simply share in the landlord's agent's fee, which is already built in to the building's operating expenses. In fact, brokers for the Tenant can typically negotiate much more favorable deals for the tenant because they know the building's vacancy and projected future vacancy as well as what incentives are being offered in other buildings in the same market. Additionally, when a prospective tenant is represented by a broker, the landlord knows that the prospective tenant is considering other options and that the landlord needs to be competitive with their rates and incentives. The prospective client ends up getting a better deal when working with a representative because the client is shown numerous alternatives and will benefit from the broker's many years of experience regarding market conditions and negotiation terms.

Isn't the landlord's agent trying to get me the best deal possible so they will 'close the deal'?

Not really. The landlord's agent's job, enforced by a listing contract, is to get the best terms possible for the landlord. Landlords' agents can not simultaneously protect your best interest and not undermine their contracted client, the landlord. Many companies drive by buildings & respond to availability signs and solicit information from the internet. They think that by doing this themselves and not engaging an agent, they save money. In actuality, companies save money and time by utilizing the knowledge and experience possessed by a professional Tenant Representative.

If I have a lawyer, why do I need a Tenant Representative?

Tenant Representatives have market knowledge which attorneys do not. Most leases are written by landlords and are very favorable towards the landlord. Attorneys primarily provide protection for the legal issues and often elect to remain uninvolved in the business terms as that is not part of their education and experience. A very important part of a tenant representative's job is to know the market conditions and to educate their client about the best business terms they can obtain. Also, a Tenant Representative's can foresee issues that may not be apparent at the time, but need to be negotiated for future protection of the client. TRG Advisors has years of experience negotiating business leases. We continually educate ourselves on what competitive terms different landlords are providing and use that knowledge to negotiate on behalf of our clients. Additionally, based on our extensive experience we can foresee what terms need to be addressed at the time of signing the lease even though they may not be relevant for several years.

I have two years left on my personally guaranteed lease. Do I have any negotiating room with my landlord?

Often you do. A landlord wants to keep a good tenant in the building. When push comes to shove, especially in a soft market, a landlord, under the right circumstances, will often grant numerous concessions to tenants in exchange for an extension of term. For example, if your building were 20% vacant, you occupy 10% of the building, have 1.5 years remaining on your lease, and offered to sign a brand new 5 year term now in exchange for a reduced rate, refurbishment including fresh paint and new carpeting, and a month free from rent, and assuming you were working with a Tenant Representative who is showing you alternatives in the market, your landlord would likely be inclined to grant you these provisions.

How is TRG Advisors compensated?

We are compensated by the Landlord, generally through his/her listing broker. The commission is a component of the building’s financial pro-forma, and as such, does not increase the cost of the transaction. Additionally, our services our free to you and our role is to save you money.

Remember, our services are free to you and we are entirely compensated by the Landlord. We work for you, on your behalf, to secure the best terms possible for your new lease or renewal.