Check Your Understanding: The How & Why Brokers Can Make a Difference in all Phases of a Lease Negotiation

Brokers can add value for a tenant by (i) knowing which landlords have a reputation for being “tenant friendly,” (ii) helping tenants secure favorable lease concessions during the letter of intent negotiations, and (iii) acting as a trusted consiglieri to the tenant’s attorney during lease negotiations based on that broker’s knowledge as to what the landlord has granted on prior deals.

Brokers can help a tenant trying to restructure their lease by conveying to the landlord that unless it is willing to grant the tenant some sort of temporary rental relief to help the tenant weather the economic distress it is currently confronted with, the landlord very well may soon be confronted with vacancy turnover, loss of revenue and a myriad of other turnover costs (i.e., a full brokerage commission for the next incoming tenant as well as tenant improvement build-out allowances, free rent concessions and professional fees).