The term “tenant representative” is a common one in the commercial real estate world. You have likely seen brokers advertising their tenant representation services in the past. But, does everyone need a tenant representative? Perhaps you are highly experienced in commercial real estate purchases and are unsure if you need help. But, if you do need a tenant rep, the downside of not using one can be significant. To see if you truly need a tenant representative, continue reading this blog post.
What is a Tenant Representative?
First, what is a tenant representative? A tenant rep, also known as a tenant advisor, is a commercial real estate agent who helps tenants, not landlords. They help tenants find the best property for their needs. A tenant rep will also represent their client in a commercial real estate transaction. This way, the tenant doesn’t have to negotiate the terms with the landlord and their agent.
A tenant advisor also helps answer their client’s questions. These may include, “How much space do I truly need in a property?” Or, “What kind of property does my business require?” No matter what question a tenant has, their representative should be able to answer it. This can be incredibly helpful so you don’t get stuck in a deal that you regret later on.
Is Tenant Representation Required?
Many people wonder if tenant representation is a requirement in their state. The answer is, you do not have to use a tenant representative in any state. It is a right for every person in the United States to work with a tenant rep, but they do not need to use one. The decision to use a tenant representative is entirely up to you. But, this doesn’t mean you shouldn’t hire this help.
Investors or business owners shouldn’t overlook their right to use a tenant advisor. They can help you in numerous ways, and the return on investment is much higher than you may expect. There are several other benefits of using a tenant rep, so it is likely in your best interest to use one.
The Benefits of Tenant Representation
The primary benefit of tenant representation is they will be on your side and will work in your best interest. Most landlords know how important it is to hire someone to help them sell their property. Since they will have someone to represent them, you should have someone represent you as well. This will ensure the commercial real estate transaction will be successful. Some other benefits are listed below.
Find Properties More Easily
It can be very difficult to find your own property if you don’t know what to look for. Between the multiple different types of properties to the different locations you need to consider, expertise is necessary to make the right choice. You may have an idea of what type of property you need and where you would like it to be, but there may be better locations or properties available. So, they can bring all of the properties that suit your needs to your attention.
In addition to knowing what type of property you need and the best locations, they also have access to commercial real estate databases. There are several databases for only commercial real estate brokers. With the experience and knowledge tenant representatives have, they can help you find a property more easily.
Get a Better Deal on Your CRE Property
Tenant representatives help their clients negotiate a great deal with the owner of the property. Doing this yourself without any experience can be very challenging. The landlord’s representative is a skilled negotiator with likely many years of experience. So, going up against them yourself can put you at odds of getting a good deal on the property or your rent.
When you have a tenant rep on your side, they will do all the negotiating for you. They will use their expertise to lower how much you spend on the total purchase or on your monthly rent. This can potentially save you thousands of dollars. So, rather than taking the chance of doing the negotiating yourself, hire an expert to assist you. Not to mention, it will save you a considerable amount of time and stress.
Having a Tenant Representation is Free
Perhaps one of the best benefits of having a tenant representative is you don’t have to pay for their services. Rather, the landlord of the property you choose will be responsible for the payment. Because the tenant representative shows their client the landlord’s property, the landlord pays them. Even if they have their own representative, they have to pay them both for their services. But, your tenant representative is still on your side and will help you get the best deal possible. So, if you are considering working with a tenant rep, you have nothing to lose.
Need Tenant Representation in Salt Lake City?
A tenant representative has an unlimited return on investment because you don’t have to pay anything. They have your best interests in mind, and they are who you need on your side. So, it is in your best interest to work with one.
If you are in the Salt Lake City, Utah area, please feel free to contact us. One of our brokers can represent you in your commercial real estate deal. Our team is ready to take on new clients and are excited to work with you!
Before COVID-19, offices and shared coworking space were doing very well across most markets. However, with the movement to stay at home, many offices were empty by the middle of 2020. And, many office space are still on the market after many months. But, does this mean it’s the end of office space forever? Thankfully, according to some studies, it’s not. So, in this blog post, we discuss the possibilities for office space in the future.
The Future of Office Space
Many people are concerned about the future of office space. This is for a great reason considering vacancies continue to rise each quarter since COVID-19 came to the US. However, just like with most commercial real estate properties, investors can see success with their space. It may take some strategy and creativity, but it can certainly be done.
Which Industries Will Always Need Office?
According to the Department of Labor Statistics, there are many industries that report not being able to work from home. Not to mention, for the industries that can work from home, a portion of the employees still report to the DLS that they cannot. So, even during and after the pandemic, many employees will need to come into the office to work. Below, you will find the primary industries that report they must go into the office to fulfill their job role. This information can help you choose which city to invest in, depending on if these industries are prevalent there.
Construction and Architecture
As you know, construction must be done in person. However, construction workers rarely come into the office to do their job duties since they must be on the worksite. This is why many investors brush off the idea of buying office space in an area near construction companies. But, construction managers do need an office to do their work.
For the most part, the managers and executives of a construction company need offices to do their jobs. In the same vein, those in the architecture field need offices as well. This is due to the software and technology they need to do their jobs. For this industry, upper-level employees need special equipment and tools to come up with blueprints. They also need meeting rooms to collaborate and plan their team’s work. By being remote, many mistakes can be made in the planning process, so it’s vital these meetings happen in person. Any mistake can cost the construction company thousands of dollars. So, this means this industry typically requires office space.
Engineering is another industry that requires its employees to work in the office. Just like construction and architecture, engineers require specialized equipment and software at their desks. There are many different subindustries for engineering, and many require engineers to sit at their desks planning, designing and strategizing. The software and tools needed for many engineers to do their jobs often cannot be brought home, which makes it impossible for them to work from home. So, for areas with many engineering firms, it’s a great idea to invest in an office space.
Many sales offices are open for their employees. These businesses are usually niche-specific such as electronics, paper products and even furniture. No matter what they sell, some employees have noticed how difficult it is to sell products to people over the phone or Zoom. At the end of the day, it’s very difficult to sell a product when someone can’t see it or feel it for themselves. Despite the boom in online shopping, there are many things people prefer to purchase in person. So, sales offices often need to meet in person.
What About the Success of Remote Work?
As you have likely heard, remote work is going very well for many businesses. According to one study, multiple industries are far more productive when they work from home. However, some companies will let their employees come back to the office environment once the pandemic is over. In fact, multiple large companies will let their employees choose whether or not they would like to be remote. For example, companies like Twitter, Airbnb and Qualtrics are all giving their employees options to work from the office once they can open their offices again. About 40% of employees report they are willing to come to the office a few days per week in the future. So, office space will still be in demand, even if remote working is instituted.
Get Around the Remote Working Boom: Purchase a Business Park
An option for investors is to purchase a larger business park, and lease out the space to multiple companies. Many organizations will likely want to downsize their office space as employees choose to work remotely a portion of the workweek. Because business parks are designed to house multiple businesses, it is much less expensive to lease them. So, there is a high chance businesses will move to business parks to save money, a crucial effort in today’s economy.
However, do keep in mind that business parks are not authorized to reopen in many states (as of November 2020). So, this may affect the rate in which businesses lease out your business park. But, once your state has approved people to work at their offices, it is a good time to invest in a business park. Utah is one of the states that is allowing people to occupy office space, as long as they follow safety procedures. Our commercial real estate brokerage helps investors in the Salt Lake City, Utah area, and we can help you find a great office space to invest in. Contact us today to get started!
Having a designated space where you and your employees can perform your daily tasks is important. When you don’t have an organized space to perform your daily duties, productivity can lower. So, purchasing a new office space can be a great business decision. In this blog post, we are going to cover why and when to purchase a new office space.
Why to Buy New Office Space
An office can be defined as a building or a section of a building where a company performs its day to day operations. The office can either be big or small depending on the business. It is a place where employees of a company can come together to conduct meetings and work together. A company can have one main office and also, that same company can have other branch offices that are located in other places.
There are several benefits of having your own office space:
How you present your company says a lot to customers. In particular, it can impact the individuals’ perception with respect to the professionalism of your business. This standard can likewise be applied to when potential customers come into the office for gatherings. Without a physical office space, most customer interactions would be email or phone calls. Whereas with your own business office space, you have a spot that you can feel confident welcoming customers to. This can be important to big customers as well as to make more sales for you.
Training of Employees
Training employees can be done in different ways. Offices give employees an open setting to gain new skills, build themselves and represent the company. It also gives open access to help from team members and superiors. Training virtually is possible, but it can take much longer than it would in an office setting.
The Best Time to Purchase a New Office Space
Now that you know the benefits of purchasing an office space, let’s discuss the best time to purchase one. The first few months after launching your business are stressful. At the start, getting an office may not be a priority because your major focus will be securing your first clients for your business. Hopefully, you will move quickly for a few months, and while it’s stressful and tiring, it’s also beneficial for profits. You can work out of a coffee shop or even at home because your only focus would be on how to make your business grow.
With time, things start changing and your business starts to grow. You are going to find you require a new office space eventually. When you start hiring new employees and have no space to meet with them, there is certainly going to be a need to expand. Below are the following ways to know you are ready to purchase a new office space.
During a Dip in the Commercial Market
Typically, most new business owners are worried about finances when it comes to buying an office space. They need a less expensive space that will meet their needs. This is why a dip in the commercial market is a great time to purchase an office. When there is a dip in the market, an office space will be far less expensive to buy. So, you can get a large, big office for your team at a lower cost. When you hear there is a dip in the commercial real estate market, consider seeking out an office space to save money.
When You Have a Downpayment Ready
You should only consider buying an office when you can afford it. With that being said, it’s best to have a downpayment ready for an office space. Business can sometimes be unpredictable, so you need to make sure you can afford the space, even during slow months. This is why it is often the best choice to put down a large downpayment, so your monthly mortgage is lower. Having a smaller downpayment can lead to larger monthly expenses, which is usually undesirable.
When Your Team Outgrows Your Current Space
Many times, teams outgrow their current office space as they add new members. In this case, it’s best to buy a new office space quickly. A lack of space can hinder productivity and can cause frustrations amongst employees. So, when your team outgrows your current space, it’s time to look for a new one. For example, if you have an office that suits one dozen people, but you need a much larger team now, you will need a new space. While this can be a pain for business owners, it’s a sign of a booming and successful business.
Buying a New Office Space
If you would like the benefits of an office space or your situation matches the best times to buy, it’s time to start looking! However, deciding to get an office should not be done in a rush. You will hopefully be in this new space for a long time. So, pay close attention to the properties and diligently look for the perfect choice. We always recommend using a commercial real estate broker for help with your search.
If you are in the Salt Lake City, Utah area, our team can help you! Contact us today so we can find the perfect office for your business.
Many business owners find themselves considering the pros and cons of buying a warehouse. The conversation around buying vs. leasing a warehouse is a common one for business owners because of these pros and cons. Whether or not buying a warehouse is a good idea for a business owner seems to be up in the air. However, we believe it truly depends on your individual situation. In this blog post, we provide insights that will hopefully help you decide whether or not you should buy a warehouse.
Buying vs. Leasing a Warehouse
When you are the owner of a large business that sells products, you likely need a warehouse to operate effectively. Warehouses have the proper equipment and space for you to operate your business and fit your employees. You may need space to store and ship merchandise. Or, you may need a space to actually manufacture products to sell to customers. No matter what it is, selling a large number of goods requires a warehouse to hold them at some point. If you have come to this realization, you may be wondering if the right move is to buy or lease a warehouse. Below, you will find the pros and cons to consider.
Buying a Warehouse
Buying a warehouse is a very big decision for a business owner to make. When you buy a warehouse, it needs to be because you plan on remaining in the space for a long time. Warehouses are a very big investment to make, which means your finances need to be in order before you apply for a loan. However, this doesn’t mean buying a warehouse isn’t a good idea. In fact, it’s a smart investment if you are in the position to make it.
- You own the warehouse, which enables you to operate freely.
- Your property will likely appreciate in value, which earns you money when it’s time to sell.
- You aren’t paying more than what the property is worth, as the landlord needs to make a profit.
- When you are ready to move, you can lease out the space if you want an extra stream of income.
- You don’t have to worry about your landlord increasing the cost of rent before you renew your lease.
- When you own a warehouse, you are responsible for everything, including the roof, utilities, and machinery if anything ever breaks. With renting, these responsibilities are on the landlord.
- Business success is somewhat unpredictable, so you may grow out of your warehouse, or become too small for it.
- You will most likely need to take out a loan to pay for the property, so you need to have your credit score and finances in check before applying.
Leasing a Warehouse
Buying a property to operate out of isn’t as common as you may think. Most businesses operate out of a leased warehouse space, in which a landlord owns it as an investment property. In fact, a large majority of the skyscrapers you see in downtown Salt Lake City are owned by landlords and leased out to businesses. For many businesses and their owners, it just makes sense to lease out a space. Many people don’t want the commitment of owning a property, which is completely understandable. After all, when you buy a space, it is likely because you plan on spending several years at the location. This is very forward-thinking for many business owners, as they plan for their businesses to grow quickly.
- You aren’t tied to the property for decades, or have to go through the selling process.
- You are not necessarily responsible for any issues on the property like air conditioning repairs, pipe repairs, or flooring.
- If your business is booming, you can decide not to renew your lease so you can move into a larger property.
- You will have to move your entire inventory, employees, and machinery to a new location if you don’t renew your lease.
- Your landlord can increase the cost of rent before you renew your lease, which is very common.
- You won’t make a profit on your investment if the property appreciates in value when you occupy it.
- You are somewhat limited to how you customize the space or operate in it depending on your contract’s terms and landlord’s wishes.
Buying vs. Leasing a Warehouse: Which is Best For You?
We hope this blog post helped you develop an opinion on buying vs. leasing a warehouse for your business. Go over the pros and cons, and consider which is best for your plans and business. If you have any questions about whether you should buy or lease your warehouse, feel free to contact us. We would be more than happy to help answer your questions. Our team helps many business owners with finding the perfect commercial property. From our expertise, we can put you in touch with a property and the ideal contract for your commercial needs.
Restaurants are a staple in most cultures and countries. Across the world, family, friends, and co-workers sit down and enjoy meals together in these businesses. Although it can be difficult to stay open at times, as long as you have great food and a great location, you will likely see success. If you want to be a restaurant owner, you probably already have the amazing recipes down. But, what about the fantastic location? If you don’t know what to look for in a restaurant space, don’t worry. In this blog post, we are going to cover five qualities to consider when purchasing restaurant space, so you can serve food in a fantastic building.
What to Consider When Purchasing Restaurant Space
The building you purchase will have a large impact on how your guests feel. If the place is dark, dingy, and characterless, they may not feel compelled to visit your restaurant again. And, as you likely know, repeat customers are what makes a business thrive. So, when purchasing a restaurant space, you will want to be very considerate of your selection. Take a look at the factors below before signing off on a property, so you are more likely to succeed with your restaurant.
1. The Size of the Space
An incredibly important factor is the size of the building you are considering to purchase. The size of a building will determine how many people you can serve at once and how many staff members it can hold. If the space is too small, people may not come if they want to avoid a long wait. On the other hand, if a space is too big, it may be wasted square footage. However, if you find the perfect building and the finances work, you can always turn extra square footage into a party room that people can rent out or for large groups to enjoy. But, do avoid getting too small of a space, so your guests and employees don’t feel cramped.
2. The Feel of the Building
One of the most important aspects to consider is the architecture of a building. Some restaurants were built with a specific cuisine in mind, so the architecture suits a certain style. For example, you have likely seen Mexican restaurants that have a classic Mexican architecture look. Purchasing restaurant space that matches the architecture of your cuisine is a great idea. When it does match, it will give customers a better experience when they dine with you.
To choose a building with the right feel, consider the types of dishes you will be serving. Will it be Italian food? If so, choose a modern building with lots of greenery to suit your menu. Once the space is yours, you can hang Italian art or even have an Italy-inspired mural painted. On the other hand, if you are going to be serving American dishes, consider a classic building with bright colors and a simple design. Then, you can decorate it with pictures from the 80s to give it a classic American diner feel.
3. The Location of the Restaurant Space
Something else to consider when purchasing restaurant space is the location of the building. For one, an easy to access building is very important. When your customers can’t find the building, or they don’t see it regularly, they will lose the incentive to stop by for a meal. If your customers have to drive far away to visit your restaurant, you may see less foot traffic. So, pick a place that is close to your target market and that is easy to find.
Yet another factor when it comes to location is the density of restaurants in the area. If there is a missing cuisine that you can fulfill, then it is a great spot. However, if there are already three other successful restaurants with the same cuisine, it may not be a smart decision to try to compete with them. The perfect location will be an area with other restaurants, but missing your cuisine style. Or, it will be an area near residential areas or shopping, with minimal restaurant options.
4. The Monthly Cost of the Building
One of the primary reasons restaurants fail is because their finances just don’t work. It can be incredibly difficult to predict which dishes will do best, how to price them, and how to make enough profit to afford the monthly payments. So, it is best to keep the monthly cost of a building as low as possible. Some ways to keep costs low is to ensure the building is in a ZIP code with a low cost per square footage. Also, if you can find a building that just needs a few cosmetic upgrades, this can be a great way to save money.
5. The Parking Options For Guests
Another factor to remember, and one that many people forget to consider, is parking options. Parking is crucial to ensure as many guests as possible can visit your restaurant. How many times have you decided to go somewhere else because there was no parking available? Chances are, you have several times. So, try to find a location with great parking options for guests. Remember, the whole parking lot doesn’t have to be standard parking options with marked spaces. A grass or gravel lot behind the restaurant will do the trick as well, or you can get this paved later on. As long as your guests can park safely, it’s a great choice!
Purchasing Restaurant Space in Salt Lake City
We hope this list helps you when purchasing restaurant space! Our team is so excited for you to start your own business and give your community amazing food. If you need help in the Salt Lake City, Utah area, feel free to contact our team. Our expert brokers can help you find the restaurant space of your dreams. We can also help you know what to look for and will keep you informed on what you need out of your space.