June/07 - There are many tasks within a firm that are not directly related to its core business, but which demand important attention, such as, for example, the administration of expenses with operational space.

The chairman of CoreNet Brazil, Ramsey Tadros, also Regional Manager of Real Estate Operations for General Motors, began the last members’ meeting highlighting that occupational costs, that is, real estate (rent, common area charges and property tax) and facilities (security, maintenance, cleaning), already represent the second highest expense of a company, after salaries.  This pressure has generated a growth in the latter decades of Tenant Representation firms.

The Tenant Rep, or real estate consultant, is one who represents his clients in all negotiations related to his occupancy, be it for relocations, rent reviews, lease terminations or renewals, negotiating the best possible commercial terms.

The best Tenant Representation firms begin their work by first understanding the needs, desires and budget of their clients, undertaking technical and financial analyses, comparing alternatives and finalizing the negotiations of price and contractual conditions and even assisting the client in the whole move process, as the case may be.

Many steps are inherent to this process.  The determination of the total physical space required in square meters, the layout, the best region, the specifications of the building (type of flooring, air conditioning, lighting, power supply, among others), the neighborhood (presence of restaurants, public transport, etc)  are all aspects that a tenant rep will consider when offering the best alternatives to the client.

But among all the advantages of the service, probably the most important one to consider is the time the Tenant Rep saves for the client, since the deliverable is a complete overview of the market, without bias, fulfilling therefore the role of defending his client’s interests.

Retaining the services of a Tenant Rep is therefore the first step towards a better deal.  See one example in the section “Success Stories”.