How much does it cost to use a commercial real estate agency when you are in the market to rent Manhattan office space? Are you going to be liable for a hefty commercial real estate brokerage fee once a lease is signed? You might be surprised.
Most leasing and sales transactions for commercial real estate are handled by commercial realtors. Landlord have managing agents and leasing companies represent their interests in negotiations with potential tenants. Many smaller businesses and virtually all large companies hire commercial leasing agents to go to bat for them. In New York City the landlord always pay the entire brokerage commission. So businesses owners get the perks of being represented by a commercial realtor at no cost.
Don’t Worry About Commercial Real Estate Broker Fees in NYC
Boasting nearly 4,000 individual buildings and 545 million square feet of NYC office space, the New York commercial real estate market is one of the largest in the world. In such a vast marketplace, it is difficult for companies to search for commercial office space without the help of a real estate agency. After all, brokers understands the market and have established relationship with the major landlords, leasing companies, managing agents and other players.
Assuming a tenant rep broker is experienced, they make the property search easier for their tenant client. And when the time comes to negotiate for a property, their expertise can be of great value to the tenant.
Since landlords customarily pay the entire brokerage commission to the leasing agent, there is virtually no downside for the tenant to have broker working on their behalf
What Does a Commercial Tenant Broker Do?
Every business is different, and therefore has different business needs – architecturally, financially and geographically. An experienced leasing agent can not only help an enterprise define needs such as square footage, layout, location and cost, but also help create a timeline so the property search occurs at the appropriate time.
Commercial tenant brokers do more than just find office space in New York. As part of the property acquisition process a broker will take the time to become closely acquainted with their client’s business. Only after understanding a client’s real estate needs in terms of architecture, budget, and location can a tenant broker get to work researching the market place for the best listings.
Do You Need A Commercial Tenant Broker?
In the New York City commercial real estate business, there are two types brokerage firms, those that exclusively represent building owners and those that specialize in catering to the needs of business tenants in the market to lease or purchase real estate. An experienced leasing agent will help the business tenant locate the best space for their particular needs as well as to negotiate the best lease terms.
Most important to remember is that commercial real estate broker fees in NYC are typically a landlord’s responsibility. Brokers are paid on a commission basis through brokerage agreement with landlords. In light of that, business owners in the market for office space rentals shouldn’t stress themselves wondering, “Can I afford to use a tenant broker?”
In fact, what they should be asking themselves is, “Can afford to NOT use one?”
Are you in the market to lease commercial space in Manhattan? Contact principal broker Alan Rosinsky of Metro Manhattan Office Space at 212-447-5403.