Editors Note: This has been updated for 2019!
There are a bevy of commercial real estate terms that can be super confusing. One of the issues we hear most often are questions around the term “tenant?” Our members who have never signed a lease before ask us, “why am I being called a tenant, what does that even mean?”
Well, in the strictest sense, you’re really a “potential tenant” more than anything else. Landlords, brokers, and others get very caught up in the terminology and verbiage of commercial real estate. It can feel like a rabbit hole hearing “CAM, NET, Gross, NNN, condemnation, reconciliation, tenant, landlord, broker, agent, and other terms.”
NOTE: If you’re really confused on the terminology of commercial real estate we have a handy glossary in our Ebook, “Leveling the Playing Field,” which will help you learn, negotiate and occupy real estate successfully as a business.
So why does the industry rely so heavily on these terms? In my experience as a broker, tenant rep and landlord, using these terms really speaks to credibility. Brokers at least use it as a qualifier for folks they are talking to about deals, leases, spaces, etc. They use it more as a probing question than anything else (and yes, I know it sucks to be probed and qualified).
However, here at Tenavox, we believe it’s absolutely essential to your negotiations to know what you’re talking about (or at least seem like it!) when you’re looking/touring/negotiating spaces.
If you use the right industry vernacular, it serves to disarm potential brokers, landlords, or leasing agents, and gives you the credibility to negotiate from a position of strength. The reason for this is simple. As a broker/leasing agent for more than 10 years, I dealt with countless potential tenants who were really not ready to occupy space at all, or sign a lease, let alone successfully occupy the space I was leasing at the time.
Tenavox is built to solve a lot of these issues between potential users of space and the people responsible for leasing them: educating, matching and informing businesses (tenants) of the things they need to consider, from budget to terminology and finances and beyond! However, two years ago Tenavox didn’t exist, and I cannot tell you how frustrating it is/was to have to let a person down who is just trying to find the right solution for their business.
This is why education and matching is so important to us at Tenavox. Our members make more informed decisions, armed with the power of leasing knowledge as well as only dealing with relevant properties to their potential needs. It lends our members an enormous amount of credibility because they know the buildings they are considering are a match on the high-level things that matter (size, timing, lease term, location, budget and more).
Important Note: What matching does to serve our tenant members has an equally exciting impact on the potential leasing agents/brokers/landlords for these properties. Leasing agents know if you have matched with their building on Tenavox you have a very aligned set of needs for their building. This is really critical.
Becoming more informed and curating your list works as serious boost in credibility and a real positive to your inquiries on potential buildings. Leasing agents know inquiring on Tenavox is not a waste of their time (unlike many other sites, sign calls etc… which they are sensitive too.)
Ultimately, The Tenavox Platform leads to a stronger, more productive negotiation with a better first step through matching and a more successful, informed lease decision
I know this can feel a bit challenging, but knowing the lingo and spending the time to curate your needs using the platform we have built do more than just seamlessly match you/score you/connect you to potential properties. Together, they bolster your position as a potential tenant and qualify you in ways that outside of having a professional broker represent your needs (which we recommend!) are critical to early stage negotiations. We cannot count the times we hear, “Well, the broker would not show me the space” or, “The leasing agent did not seem interested in our needs.” That won’t happen if you bolster your position as a potential tenant with knowledge.
That is 100 percent how leasing agents/brokers/landlords feel. If you don’t sound credible when you’re inquiring on a building, they will not deem you worth their time or their clients’ time (the landlords). It’s sad to say, but it’s true. Their job is to represent their landlords effectively, and a gigantic part of that is inserting credible tenants into their properties for their clients. Most brokers and agents work on 100 percent commission as well, so qualifying potential tenants and choosing which one’s are most viable is a daily part of their jobs. This is why it’s essential to educate and inform yourself at the earliest stages of a lease decision.
The good news? At Tenavox, we have made this process fast, effective and seamless for both tenants and leasing stakeholders. So operate with knowledge, search with strength, and negotiate with power using Tenavox. Remember, our team is here to answer ANY questions you may have, it’s what we do here at Tenavox. Our goal is to have our business decision makers (who we just call members!) feel like an informed and empowered tenant before making any decisions that could affect their ultimate lease process.
Tenavox is built to connect you to the best resource, whether that’s a building, professional, or educational connection that can help your decision be smooth, efficient and successful. We’ll help you feel like a tenant, WAY before you ever sign a lease :)