Dear Mr. Landlord: We Both Know You'd Rather DealDirectly with the Tenant!

Q&A on Tenant Representation with a CommercialLandlord
Part Three of a Three PartPost

Most commercial landlords understand the role of tenantrepresentation brokers and welcome the benefits they derive whentenant representation brokers properly educate and advise theirtenant clients. However, some landlords, mostly old-schooldie-hards, continue to maintain very negative views of all thingsabout the tenant representation process. Some actually get offendedby the very idea of a tenant representation broker. Offended!?What's that about?

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In a recent Q&A conducted via email with a prominentcommercial landlord, I had the opportunity to hold a completelyfrank and open discussion about his views about tenantrepresentation brokers. And, while some of the conversationwas challenging at times, both of us came away having learned fromeach other.

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I invited the commercial landlord to provide me with his viewson tenant representation, tenant representatives, and how he'dprefer to conduct the business of leasing his properties. Theconversation got so good, that it took me three posts to include itall. Be sure to go back and read Parts One and Two! Following is Part Three of that dialogue:

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Read Part One andPart Two ofthis three part post.

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7. Landlord: I wish tenantrepresentative brokers would....

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A) Present complete information on ALL tenantrequirements at their first communication with me

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RealStrat's Response: Do you present all ofyour requirements at your first communication with tenantrepresentatives? Of course not! While most tenantrepresentatives strive to provide complete information, so thatlandlords can make informed and intelligent decisions, sometimescomplete information is unavailable. In other instances,certain information may be confidential or may change over time asa result of landlord responses, negotiations, or changes in theobjectives and needs of tenants. So, providing ALLinformation at the first communication, while a preferableapproach, may not always be possible.

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B) Permit landlords and tenants to negotiatedirectly

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RealStrat's Response: Depending on many movingparts, including issues of confidentiality, tenant preferences,landlord's style, and more, permitting direct negotiations may notbe beneficial to tenants or to the transaction.

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C) Not grandstand

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RealStrat's Response: Absolutely! Frankly, no one likes a show off!

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D) Make the overall transaction process easierfor the landlord

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RealStrat's Response: Unfortunately, while noone should intentionally make a transaction unnecessarilychallenging, the demands made to the tenant representative by itsclient may have the unintentional result of creating challenges forthe landlord. And, since the tenant representative's jobis protect the interests of the tenant, making things easier forthe landlord may not be on the tenant's agenda.

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E) Communicate thoroughly, more often, and ingreater detail

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RealStrat's Response: A tenant representativeshould absolutely communicate effectively to landlords, especiallywhen asking that landlord to be responsive and expend time andresources in an effort to complete a transaction. However, inprotecting their tenant's interests, tenant representatives may notbe able to communicate in a manner always preferred bylandlords.

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F) Hurry the hell up! Tenantrepresentatives often take too long and drag out the process. Either make a deal with me or let me move on to a realprospect!

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RealStrat's Response: You're certainly rightabout that! Sometimes, transactions feel like they takeforever. But, in many instances, tenant representatives andtheir tenants must contend with changing business tides and theresulting impact on the tenant's real estate requirements. Additionally, based on how you and other landlords negotiate, theoutcome of the transaction, and the tenant's preferences as towhere and how it will make a deal, in many cases, is not knownuntil closer to the end of the negotiation process.

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G) No longer exist (I had to! Just kidding)

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RealStrat's Response: Ha! Ha! Landlords,tenants, and tenant representatives maintain a peculiar set ofrelationships. Tenants and tenant representatives each havethe kind of relationship with landlords that makes them dependentopponents. Even with their bumps and potholes, therelationships work, and they result in profits and success for allinvolved. As the world changes, so will the roles andrelationships of these three parties. Tenant representatives,the direct value they create for their tenant clients, along withthe indirect value landlords derive from their presence, willlikely be around for a long time.

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Mr. Landlord, thanks for being open about your beliefs andyour concerns, and for being a good sport about this sensitivetopic. I hope that my replies helped you as much as yourcomments helped me.

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Read Part One andPartTwo of this three part post.

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Copyright Real Estate StrategiesCorporation 2010. All Rights Reserved.

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