Toronto, ON (PRWEB) November 05, 2013
For years, prospective tenants of office space have relied on commercial real estate agents to search and acquire suitable space. “This model has worked well, however in today’s economy tenants deserve to get more value from their leasing transaction,” says Michael Walter, a leading tenant advocate for fairness in commercial leasing.
“It is generally regarded that commercial real estate agents serve an important function in the leasing process in exchange for a commission that is usually paid by the Landlord. What isn’t as well known is that, in most markets, smaller tenants can enhance their bottom line by receiving a substantial commission rebate from their leasing transaction – but only if they can find and work with a willing experienced agent,” he said.
Since starting http://LeaseCashBack.ca last summer, clients in Ontario and across Canada who lease over 10,000 square feet have secured full-service real estate agent services and received a risk-free rebate up to $100,000 on the conclusion of the leasing transaction. As Walter points out, many tenants are unaware that they are able to secure the added rebate benefit.
“Commission rebates are not new in the real estate industry however in most cases only large tenants of 50,000 square feet or more are able to negotiate a rebate as part of their leasing deal. Real estate agents deserve a fair fee for their services, but I also believe that smaller tenants deserve more value from their leasing transaction. These two statements are not mutually exclusive,” says Walter.
He also warns that many agents are, at best, reluctant to offer commission rebates even when asked.
“Commission paid by the Landlord on a leasing transaction is how the agent gets paid. Most agents are hesitant to offer a commission rebate to any tenant as this would mean that money comes out of their pocket. In the past, rebates were only available to larger tenants who ask and can successfully negotiate the benefit. The negotiation process causes undue stress and complications to what otherwise should be a mutually beneficial client-agent relationship,” he said.
Walter cites numerous reasons why commission rebates should be more accessible to commercial tenants, including a survey conducted by Angus-Reid that found 67 per cent of Canadians polled agree that traditional real estate agents, and their commission fees, are one of the factors contributing to price inflation of real estate costs. He points out that commission rebates are a valid and important negotiation tool, so tenants should be proactive and seek a real estate agent receptive to the arrangement.
For more information, please visit http://LeaseCashBack.ca.