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Why should I sign an Exclusive
Broker Agreement?
Most of the Fortune 500 corporations now use
brokerage services, having signed exclusive representation
agreements with these brokers.
Whether you need 2,000 sq. ft. or 200,000 sq.
ft., searching for office space can be a complicated and time-consuming
process. Most office decision-makers do not have the luxury
of devoting substantial portions of their time to a successful
office relocation. Tenants usually relocate once within five
or 10 years. Obviously, they cannot compete with the in-depth
market knowledge of the office-leasing specialist who is involved
with the marketplace on a daily basis. Experienced brokers
know what landlords are willing to do in terms of rent, concessions,
and a host of other factors. Brokers who know details of prior
transactions have invaluable resources for negotiations that
are not available by simply asking landlords what they are
willing to do for a tenant.
For example, if a leasing broker knows that
a landlord offered a more attractive incentive package to
a prior tenant than what is on the table, or that a landlord
is always behind on time commitments for tenant build-outs,
this information can be invaluable to clients to help them
make more informed decisions.
Lease contracts are commonly 20 or more pages
long. The bottom-line effects of an improperly negotiated
lease can have long-term, devastating effects on the tenant.
Experienced tenant representatives understand the needs and
requirements of tenants and landlords, and they are able to
serve both parties fully.
Who pays the Broker’s
Fee?
The landlord always pays the broker's fee. The exception to
this is the rare sublease situation where a sublessor will
not pay the broker’s fee; a broker should make a potential
tenant aware of that type of arrangement from the beginning.
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