I found a retail space that I want to lease. Should I get a tenant side broker to help negotiate in addition to my lawyer? Or is it better to negotiate myself? I’ve leased one space before so I have some knowledge on what to look out for, but I’m definitely inexperienced!
As a small cre LL, 98% of the time we don’t lease to someone using a tenant rep. We simply can’t afford their commission AND our PM’s commission, with our lease rates. Not worth it unless tenant pays their broker. Just fyi… GL!
I kind of think it depends on your geographic area and what is customary. Here in a major midwestern city I couldn’t get anyone to return my calls regarding available properties on my own. Once I connected with a broker, people returned his calls on my behalf right away.
I’ve never worked without a tenant broker. In my experience, larger, more professional landlords will pay their commission. If not, the deals don’t seem to come together anyway because the landlord isn’t on the same page.
You don’t need a broker. The lease will most likely be a standard template that’s used for the other tenants as well. Have your attorney look it over and that should be fine.
One suggestion is to request they add a clause that includes loss of business due to Covid or other pandemic related closures or mandates.
What type of retail space is it (clothing, food, beauty…)?