Everyone knows that when you lease a place to live, you basically represent yourself and the leasing agent represents the property owner. Not everyone knows that in a commercial lease the tenant has the right to be represented also by having a commercial real estate broker help them find space and negotiate the lease. Dan adds that “The best part about it is that the broker’s compensation is actually paid by the property owner, so this service is at no cost to the tenant.” In this type of transaction both parties are represented by a commercial real estate professional.
All kinds of complexities exist in commercial lease transactions such as differences between rentable/ usable space, options, terms, load and efficiency factors, etc. Lease types can vary widely from a full service lease where almost everything is included in the rent, to a NNN lease where the taxes, insurance and common area maintenance are paid by the tenant. Most commercial leases are drafted by attorneys that represent the property owner and stack the terms in their favor.
“We help the business owner and entrepreneur navigate the process and advise them as to what lease terms are reasonable and always recommend a legal review prior to signing” said Dan. Millridge Real Estate pays for access to statewide databases that help determine what market lease rates are for Retail, Office, and Industrial space and use this information to your advantage. Another advantage is the ability to have a broker find properties through their network of commercial brokers that represent property owners. Many times they can find properties that are not advertised very well or are not on the market.
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Dan Smith started as a licensed broker with Millridge Commercial Real Estate in 2009 and launched NCTenantrep.com at the start of 2010 to educate and put some emphasis on the Tenant Representation aspect of the Commercial Real Estate business.