A broker is a broker, right? This is the general perception among the vast majority of businesses. However, this lack of understanding of the different types of real estate brokers can prove to be a very costly oversight when buying or leasing commercial property.
Just as doctors and lawyers have certain areas within their field in which they specialize, so do brokers. And this specialization can have a big impact on your business’ negotiation for commercial real estate.
So what are these different specialties? One of the most distinguishable differences between brokers is who they represent – the tenants and buyers or the landlords and developers.
Tenant Representation and Buyer Agency are interchangeable terms that refer to an arrangement in which a real estate agent works on behalf of the tenant or buyer. Pennsylvania law states that, without any other agreement, real estate agents work for the landlord or owner. Some firms will offer tenant representation while also representing landlords and developers, which creates a conflict of interest.
With Omni Realty Group, I have selectively chosen to be Central Pennsylvania’s only exclusive Tenant Rep/Buyer Agency Firm to avoid this conflict of interest and to better serve the interests of my tenant and buyer clients. I believe that commercial real estate tenants and buyers should receive unbiased advice, up-to-the-minute market information and aggressive representation in negotiations. And the only way to offer this level of service is to focus solely on the unique interests of the tenants and buyers.
In fact, it is my steadfast policy to never represent landlords or owners. This eliminates any conflict that can result from trying to represent the interests of both sides. It also ensures that my loyalties lie solely with our tenant /buyer clients. This approach, combined with my extensive experience, proven expertise and dedication to client service, sets Omni apart from other brokerages.
Today, business owners and managers understand the compelling “no conflict of interest” business model of Tenant Representation and Buyer Agency. More businesses are seeking firms that specialize in this niche of the commercial real estate industry to add greater value and to establish on-going client-service provider relationships. When working with a Tenant Rep or Buyer Agent, a business searching for a property to lease or buy is not at risk of their broker attempting to focus special effort on his or her own listings.
Given this specialty, one common question is “Who pays the broker?” In most cases, these services are free of charge because they are paid for by the landlord or seller. An even greater benefit is the peace of mind that since a Tenant Rep/Buyer Agent only represents tenants/buyers, the organizations that hire them don’t have to be concerned with the broker balancing between the obligations it has with its tenant/buyer clients and its landlord/owner clients.
Have you ever worked with a Tenant Rep/Buyer Agent? Do you need additional clarification as to their services and benefits? Share your comments and questions in the space below!