Commercial Estate Agents???
Discussion
Hi,
Just wanted to ask, if a commercial property is advertised through a local commercial estate agent, would there be any advantage to just contact the owner of the property directly and then to get solicitors to sort out a lease, etc. I'm considering taking on the lease for a property but through coincidence, a friend actually knows the owner of the property. How exactly do agents make their share. Are they effectively a middle man, or do they represent the landlord etc.
Thanx for any help in advance.
Just wanted to ask, if a commercial property is advertised through a local commercial estate agent, would there be any advantage to just contact the owner of the property directly and then to get solicitors to sort out a lease, etc. I'm considering taking on the lease for a property but through coincidence, a friend actually knows the owner of the property. How exactly do agents make their share. Are they effectively a middle man, or do they represent the landlord etc.
Thanx for any help in advance.
Depends whether the landlord wants to have a dog and bark himself! The agent will be acting for the landlord and will be paid a percentage of either the rent achieved if a letting or the price achieved if it is a sale.
I don't see how it benefits you to avoid the agent; I have seen way too many situations where landlords and tenants sit down over a cup of coffee to hammer out a deal and the tenant walks away thinking he has done a good deal but in reality needs to go and buy a large tub of vaseline. If you do the deal via the agent and you think you are being done over, then you at least have recourse to complain to his governing body, assuming he is part of one!
I don't see how it benefits you to avoid the agent; I have seen way too many situations where landlords and tenants sit down over a cup of coffee to hammer out a deal and the tenant walks away thinking he has done a good deal but in reality needs to go and buy a large tub of vaseline. If you do the deal via the agent and you think you are being done over, then you at least have recourse to complain to his governing body, assuming he is part of one!
Under the agents terms of engagement they may have 'sole selling rights' meaning regardless of who intorduces the party the agent gets a fee. If the agreement is 'sole agency' they get the fee if they bring the party to the table.
No harm in making a direct approach and seeing how the freeholder wants to play it.
No harm in making a direct approach and seeing how the freeholder wants to play it.
noel said:
Under the agents terms of engagement they may have 'sole selling rights' meaning regardless of who intorduces the party the agent gets a fee. If the agreement is 'sole agency' they get the fee if they bring the party to the table.
No harm in making a direct approach and seeing how the freeholder wants to play it.
No harm in making a direct approach and seeing how the freeholder wants to play it.
Yes, but if the agents hadnt introduced the OP, then the freeholder wont have to pay (yes I know technically he saw it advertised by the agents, but if they dont have the OPs details on files, nowt the agents can do)
However, as you say, no harm in the direct approach, but dont expect to get a big discount on the rent for doing so
The Londoner said:
If you do the deal via the agent and you think you are being done over, then you at least have recourse to complain to his governing body, assuming he is part of one!
Ermm no you don't. The agent is paid by the Landlord to get the best deal for the landlord, which is definitely not the same as the best deal for the tenant!
I have seen some real horror leases from tenants points of view, time of the essence claues on rent reviews, rent review clauses which add thousands to the rent on review etc, and these deals have gone through the tenants solicitors!
Before taking any commercial property I would recommend appointing your own agent who can negotiate for you with the Landlord agent (and if his advice is wrong you can potentially sue him!). If you don;t go down this route then make sure you know the local market, speak to other local occupiers and find out how much they are paying in rent and remeber that rents are valued per sq ft (or sq m). Find out whether they got any rent free period, or got the landlord to pay for any works needed.
Where are you looking and for how much space?
FUBAR said:
Agree with Richard, as the freeholder is paying the agent, then why worry? The main benefit you have is *if* negotiations break down, or are slow, you can get your mate to chase the freeholder up/get an answer.
TBH, often its the solicitors causing the holdups.
TBH, often its the solicitors causing the holdups.
Oi!
You could just as easily say its the clients who expect utterly stupid deadlines to be met. I have even had a client present heads of terms in the morning and demand that the lease be agreed that day
Back on the point - the Landlord's agent has only one interest, getting the maximum for the landlord. They owe nothing to the tenant and will not even be polite enough to use a lubricant
It really makes no difference to the deal if you work with the landlord's agent or not but if you have an agent of your own then they would expect to deal agent to agent
For anyone not experienced in the field you must employ your own agent to negotiate on rent, rent free or concessionary periods, rent review terms, repair and dilapidations, assignment and underletting, alterations and reinstatement, user covenants, service charge (extent, exclusions and caps)...
Big enough list to convince you yet?
Gassing Station | Business | Top of Page | What's New | My Stuff