For office lease space in San Jose, CA can tenant negotiate a lease or real estate agent is required?

If real estate agent is not involved then do the landlord give discount on lease since they don't have to pay commission to the tenant's agent? Is it required for tenant to consult the lease agreement with attorney if dealing without an agent?
In Leasing Property - Asked by Hiral S. - Feb 16, 2012
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Answer(s)

Eric R.
Broker/Agent
San Jose, CA

If the landlord has an agent representing them, chances are the commission is not going down by much, if anything because you don't have an agent representing you, because the landlord's agent probably will get the portion of the fee that your agent would have had.
It's recommended you have an agent represent you, and I would also recommend you have an attorney review the document. The attorney will cost you something, but your agent should not only not cost you anything, but they should save you money by negotiating a sound deal as well.
Good luck.

Feb 16, 2012
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PETER M.
Owner/Investor
Laguna Niguel, CA

Attorneys get in the way of negotiations by being difficult and wasting time (to earn their fee) Ultimately costing you and keeping you from getting your best deal, if at all. Real Estate Agents ultimately increase the cost of your monthly rent by requesting commissions that were not offered. If you understand the English language you can write into a Contract anything you want to if both parties agree to it. If you don't trust the Company or Landlord move on to the next project. The trappings of making a deal become difficult with middlemen like Attorneys and Real Estate Agents. Principal to principal, face to face; simplicity and honesty, a hand shake and your word; that's what allows for a workable lease agreement.

Feb 18, 2012
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Allan B.
Broker/Agent
San Jose, CA

The simple answer is Yes! You can negotiate your own lease without being represented by an agent.
The next question is: Should you negotiate your own lease.
Since you asked a basic question - almost certainly the answer is No you should NOT negotiate on your own.
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You are probably a small business owner - as a one shop owner YOU HOLD THE HIGH CARDS.
Most Commercial Brokers that are not lease specialists don't understand this. Most professional leasing agents know this all too well and are looking for someone like you that has no idea of the strength of his position.
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I'm a small business broker, we represent buyers and sellers of businesses and along the way advise on leases and extract folks from problems.
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You should engage a Business Broker or Small Commercial Broker (not a big broker pushing AIR leases). The test is if they can explain to you, why YOU HAVE ALL THE POWER in negotiating a small business lease contract. Hire that agent.
allan
A Better Business Broker, Inc..

Feb 19, 2012
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Kyle M.
Broker/Agent
Culver City, CA

You certainly can negotiate for yourself. A broker is not required. In my experience with tenants what typically happens is that your focus would be on the things your comfortable with. Namely the base rent and term length. What often doesn't get negotiated are the other terms of the lease that ultimately can and cost you a lot of money. For example what building expenses you are responsible for and the formulas to calculate those charges. It's not surprising since these are things the tenant is not normally familiar with and they don't negotiate lease contracts on a regular basis. So what seems like a " good deal" can be quite costly in the end. It seems so clear but I will reiterate, have someone represent your interest in a lease contract. The expertise does not cost the tenant, it comes from the landlord and is expected from all parties. Unfortunately sometimes it is only realized after the fact that you should have used a professional who engages in these negotiations daily.

Feb 25, 2012
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Arezou S.
Broker/Agent
San Francisco, CA

Hiral, I would agree with the majority of what is being said about having someone represent you. You have to understand that when you are a tenant you don't pay or incur any of the real estat fees, the landlord pays for it all, unless it is not being offered by the landlord. I would consult a professional who deals with tenant reps and consult with them as to what you can do. The service to provide you with just information should not cost you anything either. Good Luck
Arezou Shadabadi
Pacific Union Commercial Brokerage

Feb 27, 2012
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Nadina C.
Broker/Agent
Phoenix, AZ

Either one. However, tenants don't know what they don't know. A broker and a real estate attorney are your best resources and protectors when leasing commercial/office space. Landlords use their own "pro-landlord" leases and a good broker and attorney can negotiate more tenant friendly alternatives to certain provisions of the lease. Also, a broker knows the market and you don't. A broker knows what concessions to ask the landlord for and you don't . You will be "penny wise and pound foolish". Not having your own representation just means that the landlord's broker will keep both "sides" of the commission (s/he is not going to give it up in your behalf) and will not be the least bit interested in your or your company's needs or financial future. Because commercial leases are multi-year, if you get into a bad deal, you are stuck with the lease for the next 3 to 5 years.

Mar 1, 2012
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