As tenant advisors, Washington Partners works on your behalf to develop the best real estate solution for your business while leveraging the marketplace to obtain the most favorable financial package possible. The best part: there is no cost to you, only savings.
What is the difference between a traditional real estate brokerage firm and a tenant advisory firm?
Traditional real estate brokerage firms represent both landlords and tenants. A tenant advisory firm does not represent landlords or pursue property listings.
How can conflicts of interest impact my lease terms?
The tenant’s objective in the lease negotiation process is to achieve the lowest total real estate cost for the space that best meets the company’s business objectives. This is achieved by maximizing the landlord’s capital contribution and concession package while keeping the lease rate low and the lease commitment as flexible as possible. In direct opposition, the landlord’s objective in the process is to get the tenant to pay the highest lease rate for the longest commitment with the lowest capital contribution possible. High lease rates and long lease commitments maximize the value of the landlord’s asset.
One of the biggest conflicts of interest arises from the fact that traditional real estate brokerage firms derive most of their revenue from property listings. Because landlords are their biggest customers, they must be careful not to “poke the bear” when they are representing tenants. On the other hand, tenant advisory firms never list properties and are free to ardently advocate for their clients, eliminating this inherent structural conflict.
So it is clearly impossible for a single firm to successfully represent both tenants and landlords when the principal parties have such adversarial interests. Just as the courts would never allow a law firm to represent both a plaintiff and a defendant in the same dispute, why would you ever allow a firm to represent you if they also represent landlords?
I have a great relationship with my current landlord, so why do I need a tenant advisor?
A good relationship between the tenant and landlord is important. It does not however mean that your lease should be compromised or that you should accept anything less than what the market will support.
The involvement of a skillful tenant advisor during lease negotiations ensures that you are receiving the best terms that are tested by the marketplace while maintaining your relationship with your landlord. As your advocate, we can professionally and courteously ask the tough questions and validate the lease terms that the market will bear.
My landlord says they can cut me a better deal if I do not have representation. Is this true?
No. When an accomplished tenant advocate is representing your firm they will know firsthand that the economic and transactional benefits derived from skillfully leveraging the marketplace will vastly exceed the market commission that landlord’s would otherwise pay to a leasing agent or their property manager. Each year, many of the top firms in the region engage Washington Partners to negotiate on their behalf.
Why has Washington Partners chosen to remain independent?
Independence is a core value of our firm and is a huge competitive advantage for Washington Partners and our clients. Foremost, it provides Washington Partners the greatest freedom to align with the interests of our clients. By staying independent, we are not encumbered by the unavoidable conflicts that arise within traditional brokerage houses that attempt to serve both Landlords and Tenants. Finally, because we are not beholden to Wall Street earnings pressures, we take the long view and always do what’s right for our clients even if it costs us in the short term.