As the commercial and industrial property market becomes more competitive, tenants often find themselves at a disadvantage when securing new (or re-negotiating) existing leases. Engaging an independent tenant representative can be very valuable, saving time, money and ensuring better lease terms.
Why engage an independent tenant advisor?
An independent tenant representative with experience, extensive networks plus superior research capabilities working on your behalf, has multiple benefits.
Access to properties not yet on the market: “One of the most valuable things we have to offer a client is our network and relationships across the industry. This has often resulted in us being able to present a property that hasn’t hit the open market yet,” says LPC Director Julian Kurath. “In a highly competitive market, getting in early is clearly advantageous”.
Independence: many of the larger property consulting firms represent both tenant and landlord. This could mean favouring landlords' properties, negotiating for the landlords benefit or simply failing to fully explore the market. Independent tenant representatives work solely for the benefit of the tenant.
Time saving: when a property search can easily take 6 - 12 months, engaging a tenant rep will shorten the process. It also frees up resources in the tenant’s business, which would otherwise be spent on searches, inspections, evaluations, and negotiations.
Research, data and industry knowledge: “Our job as tenant representatives is to keep a finger on the pulse of the market, understand the dynamics, and be able to provide comparative data to our clients quickly”, says LPC Director and Head of Industrial Michael Raymond. “We provide accurate advice on what they should be paying, where to locate or where to get better value”.
Cost saving: one of the biggest benefits of engaging an independent tenant representative is cost saving - having the knowledge and expertise to negotiate the best lease terms.
Risk mitigation: having expert advice in securing a property, and contractually when negotiating the lease, means that a tenant is less exposed. Tenant reps will ask the right question upfront, often anticipating potential pitfalls that the tenant hasn’t considered.
The pandemic has created a one-off opportunity for lease renegotiation and restructure. All the best as you leverage this opportunity.
At LPC, we partner with tenants and occupiers across Australia and New Zealand to optimise their office, industrial and retail property portfolios providing an integrated suite of services including transaction management, portfolio and lease management and project management. We provide conflict-free advice and representation, meaning we have no ties with owner-developers or landlords. Tenants and occupiers interests remain at the core of what we do as we negotiate on your behalf and endeavour to rebalance the scales in a market which favours landlords.