While our answer may seem at first self-serving, yes they do! While many businesses would not hesitate to call their own agent to discuss their lease renewal, there are still many small businesses people who have difficulty with the concept that after occupying space in a landlord’s building for 3, 5 or maybe even 10 years, should engage a tenant representation specialist, when it comes time to renew their lease, expand, or engage in some other transaction.
So, riddle me this: How is a renewal transaction so different from an initial transaction, such that in a renewal the tenant would not require the same intelligence, market and transaction knowledge, experience and expertise that can be provided by a tenant advisor? Especially, when so many businesses are struggling to survive or grow in this economic climate. Every dollar counts! And more than ever, corporate executives are held to very high standards of ethics, transparency, and disclosure, when boards of directors and other stakeholders demand that companies seek the best alternative transactions and select only those that are most beneficial, how could any company agree to renew a real estate lease without being properly advised by a qualified third-party professional?
Don’t lease renewal transactions contain the same components as initial leases? Will the tenant’s space need to be modified to support changing business criteria?
So, do tenants require the same expertise and insight when contemplating lease renewal vs. relocation? You bet!
Is it in the landlord’s best interest to circumvent the tenant’s real estate representative and attempt to deal directly with the tenant? Not really. Most businesses prefer to be objectively advised by a service provider whose role is to protect the interests of the corporation.
And, frankly, a landlord who will profit from a transaction with a tenant normally would not risk it. Moreover, when a landlord attempts to by-pass tenant’s real estate advisor, tenants don’t appreciate it and often view that landlord negatively.