Chris Carmen / December 4, 2015
The Wall Street Journal is drawing attention to the fiery debate between tenant representation firms and full-service brokerage firms over the issue of the inherent conflict of interest that occurs when one broker represents both sides of a real estate transaction.
While full-service firms are quick to point out that their professional ethics require them to act in the best interests of each client, firms that specialize exclusively in commercial tenant representation claim that it is not possible to simultaneously represent the best interests of both the landlord and the tenant. Because tenant rep firms have no ties to landlords, they are in a stronger negotiation position for accomplishing the tenant client’s objectives.
At CARMEN Commercial Real Estate, we find that after companies have been introduced to the concept of tenant representation, they never again consider using a full-service brokerage firm. The benefits of a long-term relationship with a tenant rep who understands your business objectives are many. In the end, they boil down to saving you time and money and allowing you to devote your energy to your core business instead of the many ongoing details of your commercial lease. Our client, Watermark Group, is a CPA firm whose partners understand firsthand the importance of avoiding a conflict of interest. Click here to learn more about their experience and why they prioritized working with a firm who was free of this ethical dilemma.
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