For four years I have worked closely with one of London’s largest independent tenant reps. Prior to working with them I’m unsure I really understood what they did or what the benefit was.
Their messaging seemed to be a little unclear or the process a little too easy, I felt as though I was missing something in my understanding which was the real magic of what they provided.
I have thought about this question a lot and ultimately end up at the same place, if I was looking for new London office space, yes, I would employ a tenant rep to assist with the search and negotiations.
The tenant rep service provides you with a lot of time saved and a solid insider’s guide to the commercial real estate market. Technology will encroach on both of these over time but right now, I feel the old way is still the best way
The trick of course is finding a good one! The work isn’t technical or complex so you need to pick the people you feel best understand your wants and needs as well as someone who gels with you as a person and/or as a business culture.
Most of the companies offer the same service lines and will get you to the same destination with variable levels of turbulence along the way so ensure you spend time finding out who really wants your business and who really understands your brief.
The cost should be around 5%-7.5% of one year’s rent. There are various different scaled or incentive price models, but I would recommend on keeping it very simple and being up front on what you think their service is worth.
Your team will mostly be one person spending on average one day a week for 4-6 months and their senior surveyor spending a max total of two weeks on the project to try and ensure it’s a smooth journey so really think through the numbers and pursue a good deal for both parties before signing up.
I do feel like tenants should demand more from their reps so I would spend some time ensuring you make it clear what you expect from them for your fee so there is no misunderstanding or unsatisfaction at the back end of the project.