If you are looking for a new location for your business, or if you are investing in commercial real estate, it’s important to understand the distinction between Tenant Representative firms and the typical Listing Brokerage firms.
Typical Listing Brokerage Firms
In a typical commercial brokerage firm, the primary focus is on acquiring listings. Once they have acquired a listing, the seller is their client, who they work hard for.
When you walk in the door as a buyer, that firm is biased in favor of the seller. While most firms endeavor to be honest, there is inherent conflict of interest when they have a pre-existing relationship with the seller.
Observe two examples:
Case 1. A broker from the Typical Brokerage Firm, LLC lists a property. The broker is contacted by a buyer (you) that has a need that can fit into and be satisfied with several properties on the market.
The Typical Broker is aware of a property listed with another brokerage that is an excellent fit for you. However, the Typical Broker does not put the property on the potential property list and does not show it to you, instead influencing and guiding you to his own listing.
Even if the Typical Broker does not wish to be unethical, the system is structured so that an inherent conflict of interest exists.
There is a big difference between working for the best interest of the client, and working for the best interest of the broker.
Case 2. There are two brokers from Common Brokerage Incorporated that both have active listings. You approach Common Broker One about a property. There are a variety of properties on the market that will suite your needs.
Common Broker 1 puts the property listed by Common Broker 2 on the top of the list, and does more due diligence in order to make that property shine, while minimizing or excluding the other properties on the potential property list.
There is a big difference between working for the best interest of the client, and working for the best interest of the brokerage firm.
Tenant Representative Firms
Pure tenant representative brokers do not list property or represent landlords. They exclusively represent buyers, investors, and end users. This means they are working for their client, and exclusively represent the interests of the tenant or buyer.
Buyer representatives have access to the same information sources, the same networks, and the same information as the listing brokerage. The difference is that they exclusively represent the interests of the buyer, rather than the seller.
At ITRA Global, one of the largest and most successful commercial real estate cooperatives in the world, we exclusively represent tenants and buyers. Wayne Timura and JD Gunter represent ITRA Global in Colorado Springs and would be honored to represent you as an exclusive tenant representative firm.