Why Landlords Win

//Why Landlords Win

The Landlord Knows All the Cards in the Deck

The landlord broker already knows which concessions he is willing to make and will never reveal this to the tenant.  Because of this, most tenants will focus on the obvious,  leaving the entire lease agreement basically untouched.  Even with a few concessions given in this scenario, this is a huge win for the landlord because he retains all the “gotcha” clauses, cost-increase triggers, and oppressive language in the lease document.

The Lease Document is a Landlord Document

A lease is usually a private document created by attorneys to minimize liability for the landlord and pass as much on to the tenant as humanly possible.  This document is far from neutral and must be amended to protect the tenant from oppressive and unfair restrictions that could potentially kill a business.

Landlords Hire Experts

Landlord brokers are full-time industry professionals who have an average of 10-15 years experience in commercial real estate in the Houston market.  These brokers advise the landlord many times on the asking rental rate and have a personal stake in keeping deals within the parameters they have stated they can achieve for the landlord.  Getting “standard” leases signed and asking rates for properties is always the goal.  Too many concessions could hurt there standing with the landlord and will not come easy.  Landlord brokers consistently outperform tenants because they have the homefield advantage and play a game where they know all the rules. Without help,  a tenant just does not have the time, access to information, or expertise to maximize concessions.  We average hundreds of emails, hours, and elbow grease grinding out a deal for clients and we know what we are doing.  If you are spending less than that AND your not an industry expert, you’re leaving money on the negotiation table.  Don’t worry though, the landlord broker’s job is to make you feel GREAT about signing that “standard” lease agreement.

The Landlord Has a Strategy

Landlords have experts advising them on how to market, price the building, structure a lease agreement, seek financing, etc.  These professionals provide a framework which protects the landlord by creating a set of non-negotiable standards the landlord will not deviate from. Remember, every deal has to be profitable in order to be a good deal for the landlord.