I am a great negotiator. Why should I use you?
What makes you a great negotiator? Probably your industry knowledge, gained over years of experience, enables you to know what results you can achieve. With respect to real estate, however, you are negotiating against a landlord who has far more market knowledge and experience in this specific transaction than you do. For example, the real estate investment trusts (REITs) negotiate hundreds of leases every year. We will use our market knowledge and experience in hundreds of transactions to achieve the best possible deal for your specific situation.
My landlord told me he is making me a special deal. Why should I use you?
Your deal might be “special,” or it might not. How do you really know? If you retain us, we will solicit proposals from multiple landlords so that you can see how the “special” deal ranks among the possible alternatives.
I have a great relationship with my landlord. Will I damage it by using you?
We help preserve your relationship by providing fact-based reasons and financial analysis to inform your negotiations. We deliver the “bad news” to your landlord that he will have to justify the renewal terms in light of current market conditions. You can maintain the cordial relationship that you are used to, while still negotiating great renewal terms.
You will be paid a commission, so won’t the deal cost more if I use you than if I don’t?
No. Here are the facts: the landlord budgets for a commission in every transaction. If that commission is not shared with the tenant’s broker it is paid to the landlord’s representative or in-house broker. More important, we achieve savings of 10-20% on your rent, versus a commission of about 4%. You do the math.
I don’t want to move, so what are you going to do for me?
We are not a moving company, so we don’t care if you move or not. The fact is that over 70% of office and industrial tenants renew their leases, and landlords know that. By using us to create a credible alternative to renewing in the landlord’s eyes, you will achieve the best deal—typically saving 10-20% over the initial renewal proposal.
Why should I sign an exclusive contract with you? Won’t I find more options if I have several brokers searching for space?
No, you will not be well served without an exclusive advisor relationship. First, it is too risky for us to invest a lot of time on a project without the certainty of payment if a transaction happens. Second, when we find a good space you run the risk of our becoming advocates of the transaction (to be paid) instead of advocates for your interests.
I am close to making a deal directly with the landlord. Isn’t it too late for you to add any value?
Not at all. Here are two examples: In a land purchase transaction we were engaged with 2 weeks remaining in the due diligence phase. We found alternatives that enabled the buyer to negotiate a 50% decrease in the price, saving $300,000. In an office lease we were engaged after the landlord submitted its “best and final” proposal. We created savings in numerous areas of the transaction totaling over $63/sq ft, or $368,000.