Tenants who are content in their space and have a robust landlord-tenant relationship have a higher likelihood of renewal, meaning fewer costs, administrative tasks, and lower turnover potential. It's a win-win for landlords and tenants.
Taking time to invest in these relationships, offer professional services, and facilitate positive tenant experiences is a profitability strategy that pays off in the present and in the long run. While busy commercial real estate investors may need more time or in-depth expertise to provide this level of service, forward-thinking investors and landlords are turning to commercial brokers to be their trusted representatives, building stronger interpersonal relationships with tenants on their behalf.
Today, we examine why landlords and expert investors should consider brokers to level up the landlord-tenant relationship and how their expertise as an intermediary player can help boost value and ensure smooth negotiations.
1. Brokers Find the Right Tenants from the Start
Securing the right tenant or tenants is the first step towards fostering stronger tenant-landlord relations. It's the launching pad to engaging with dedicated, courteous commercial tenants who care for your property — it's one of the best and most fundamental real estate investment strategies.
Through expert screening, brokers create a situation in which risk is minimized by finding only quality, dedicated, and appropriate tenants for the space.
Additionally, they can apply specialized marketing and outreach strategies to establish a tenant pool of high-potential tenants. Along with setting property expectations, brokers can use marketing and culture-fit markers to determine if potential tenants align with the landlord's goals and vision for the space–creating a higher chance of success and ongoing collaboration.
2. A Commercial Real Estate Broker Communicates and Sets Expectations
Brokers step in during one of the most critical stages in the landlord-tenant journey–the leasing and negotiations. During this stage, clarity, fairness, and equitability are essential, and these outcomes can only be achieved through expert-level communication and interpersonal skills.
Brokers act as an intermediary to understand and translate landlord and tenant needs into clear language so that both parties are on the same page. Working in a responsible, consistent, and friendly way, they advocate on behalf of the property owner to set reasonable expectations and ensure the lease terms are transparent, understood, and equitable for the potential tenants.
Additionally, through market knowledge, experience, and expertise, brokers can be upfront about where any foreseeable issues may arise and step in and make appropriate changes before it's too late. These issues may also depend on local, state, and federal legislation, which both parties may not be aware of.
As it becomes apparent that tenants may be occupying the space, you may notice an increase in questions that start rolling in. Brokers can step in to answer these questions, maintaining open lines of communication to ensure the occupancy goes as smoothly as possible and to avoid unnecessary frustration or confusion.
3. Brokers Promote Fairness and Equitability
As a commercial landlord or investor, you want tenants to have the freedom and conditions to run their businesses at maximum capacity. Still, at the same time, you want to know that your asset is being cared for and maintained and that sufficient safeguards are in place to promote this.
Finding a balance between these two forces is challenging. An ethical, balanced broker can negotiate terms and employ sound judgment to factor in both vantage points for maximum equitability so neither party feels disadvantaged at the end of the process. Additionally, brokers work from the foundation of commercial real estate industry standards, building lease agreements with rules and regulations that cover all bases, maximizing protections.
A vital sign of a fair and balanced broker will be their education or higher levels of accreditation. Brokers that have achieved certification from recognized bodies. For example, Brian Properties, Inc. brokers are Certified Commercial Investment Members and will generally have industry-specific training related to developing more vital interpersonal skills and negotiation.
This training means brokers are specially prepared to deal with high-stress and tense situations, maintaining a level of professionalism and respect throughout.
4. The Right Chicago Commercial Real Estate Broker Delivers Post-Lease Support
The duties of commercial brokers don't come to an abrupt end once the lease is signed. Brokers can assist with dispute mediation during the initial stages to iron out the rough patches and can equally assist with lease renewals and ongoing support. Offering multiple points of contact and more professional service, brokers act as a buffer between the landlord and tenant, especially during these challenging periods, so as not to strain the relationship.
Some companies, such as Brian Properties, provide commercial real estate management services. This continuity and extension of the initial agreement solidifies our status as trusted partners and helps build more robust, longer-term relationships. Additionally, it may boost renewals and retention rates, leading to higher ROI and property valuation.
5. Brokers Adhere to Compliance and Regulations
Failure to acknowledge, recognize, and abide by zoning and building codes can lead to costly legal issues and internal issues between tenants and landlords.
From the ever-changing compliance and ESG ( Environmental, Social, and Business Governance) in Chicago commercial real estate to local, state, and federal legislation updates, brokers can guide landlords and tenants to ensure they adhere to the necessary legislation and that these concerns are factored into the lease agreement.
Benefit From a Better Landlord-Tenant Relationship With Brian Properties
A highly experienced, skilled commercial real estate broker can help lay the foundation for successful landlord-tenant relationships. As these relationships strengthen through trust and loyalty, a landlord's financial circumstances and the tenant's business success flourish.
For landlords and commercial real estate investors who don't have the time to invest in nurturing these relationships but still want to provide an exceptional tenant experience, the answer is simple: work with trusted, experienced brokers who can act on your behalf and with your best interest at the center of everything that they do.
At Brian Properties, we provide unparalleled brokerage services backed by decades of experience and tried and tested processes that ensure maximum tenant and landlord satisfaction. Reach out to our team to learn more, and request your free copy of "The Ultimate Guide to How a Commercial Broker Can Help Landlords Succeed."
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