Is your building’s agent representing your interest? Did your last broker represent you and the landlord? It really makes sense that a conflict of interest could hurt your bottom line. However, it typically goes unnoticed. Why? The extra rent you pay, but “didn’t have to” is attributed to the cost of doing business. It has been our experience that companies frequently lose thousands of dollars by overpaying on their rent. The fact is “they don’t know what they don’t know.” For instance, if a tenant pays $25.00 per sq. ft. for rent, but they could have taken a competitive lease at $23.00 per sq. ft. That’s a $2.00 per sq. ft. savings that went untapped. If the lease is for 10,000 sq. ft., then the wasted rent is $20,000 per year. If the lease term is 6 years, then the extra rent equals $120,000 not including escalations in the rent.
You can quickly see that if “your” broker is trying to represent a landlord’s interest as well; then you might not ever hear about the less expensive alternative. The bottom line is – conflicts of interest will cost you. That’s why we at BonnE Commercial Real Estate Services only represent one side at the negotiation table – yours!
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