Frequently Asked Questions

At SCGWest our highest priority is the interests of the tenants we represent.

When real estate service providers represent both landlords and tenants, fiduciary obligations are inevitably compromised, and service providers assume the role of mediators rather than exclusive advocates.

It is because of this that we never represent landlords, developers, property managers, real estate investors, or any other organization against which our clients will negotiate. This gives our clients the peace of mind that we will never undermine their best interests with strategies intent on winning future business from real estate owners or developers.

A true “tenant representation broker” never represents landlords. Traditional brokers represent landlords, or have interests in property, creating the conflict of interest that undermines their fiduciary capacity. A traditional broker may claim to work as “tenant rep” on a particular transaction; however, their conflicts persist, as the landlords are still potential customers of that broker, thereby undermining the broker’s credibility and objectivity. While an individual in one of the national brokerage houses may attempt to limit his or her services to tenant representation, the fact remains that the firm as a whole makes the majority of its revenue from landlords.

A broker cannot serve two parties with opposing interests. Landlords want the highest rent possible, for the longest fixed period of time and the smallest outlay of upfront costs. Tenants, on the other hand, want to pay the lowest possible rent with the greatest lease term flexibility and concessions from the landlord. One person cannot accomplish both objectives. It can be equated to an attorney representing both the plaintiff and the defendant in a legal case — it is impossible to serve both masters. To represent both landlords and tenants, either in one transaction or over a period of time, creates a conflict of interest that negates any meaningful contribution the broker might have made in their advisory role.

Quality tenant representation brokers can educate, empower and counsel their clients while leading a negotiation with market insight, strategy and diligence. In real estate negotiations, information is power. Landlords, by definition, are in the real estate business. Most businesses are not involved in real estate on a day-to-day basis, and are therefore not fully appraised of market dynamics and negotiation opportunities. Landlords would just as soon keep it that way, while a strong tenant representation broker will level the playing field and provide meaningful, time- and money-saving advice.

We are paid by the property owner upon the successful completion of a lease or sale transaction. The landlord or seller typically pays our real estate commission — generally a percentage of the transaction value — as the tenant’s or buyer’s representative. In most cases, the property owner has already signed a listing agreement with a traditional landlord agent, and that listing agreement anticipates the payment of a tenant or buyer side commission, similar to residential real estate.

At SCGWest, we provide a complimentary lease expiration reminder service, available here, to notify our clients of key dates and milestones throughout the lease. Often, the subject of real estate will come up ahead of the scheduled lease expiration, as a result of mergers and acquisitions, growth, contraction or business change, and we are always available to answer questions when they arise. The time required to find a company the perfect space varies by tenant, but we usually want to start that conversation two years ahead of the lease expiration.

It depends. We help companies to ask the right questions in evaluating lease versus buy opportunities, and to model the financial implications of each scenario. With so many factors to consider in making the decision to buy or lease space, we have designed a worksheet that enables you to customize several options based on your own unique business circumstance.

Renewal options are always a good idea, but rarely the best way to negotiate your rental rate under a new lease. These renewal rights are typically written so that a company must exercise the right well in advance of the lease expiration, as well as in advance of determining a new rental rate for the space. Landlords love when a tenant exercises a market rate renewal option because the tenant is typically captive and forced to negotiate for a lower rental rate without any leverage. A good tenant representation broker can educate a company on how to navigate a lease renewal without falling into the landlord’s renewal option trap.

Most landlords recognize and respect our role in a real estate transaction. If you have a good relationship with your landlord, our work can preserve that relationship while also ensuring that your lease terms are competitive. We are professional and courteous, and as an outside third party we remain objective and can ensure that your interests are protected. SCGWest understands the importance of a good relationship between a business and its landlord, and we help to maintain that bond while delivering our clients the best market rate possible. With the volume of leases we complete each year, as well as our local market expertise, we are able to bring leverage and credibility to ensure you are offered the best economics available.

Every client is unique, but the basic elements of our process are commonly applied. We first spend time asking thoughtful questions at the outset of a project to better understand the client’s true objectives and constraints. We then work to define the project, examine the marketplace to develop compelling space ideas and alternatives, engage in strategic and efficient negotiations, and follow through with diligence and professionalism, including contract review, project and construction management and project close-out.

We do more than that. At SCGWest, we are capable to help corporate office, municipal, medical and nonprofit clients with their real estate matters. We represent tenants and buyers with their real estate needs both in California and nationwide.

Not if your broker is SCGWest. Our highest praise is when a client says to a peer, “You would be crazy not to at least talk to SCGWest first.” Our intent is to add value in every interaction and to remain focused on what is best for the client. We know the market better than anyone else — and we guarantee our results.

We Turn Your Vision Into A Reality

The key strength of SCGWest is the quality of the individual team members and the ability to form a team perfectly suited to any project with knowledge, competency, and experience unrivaled by our competitors.

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PHONE

855-328-8004

EMAIL

team@scgwest.com

WEBSITE

retailrealestateadvisory.com

PHONE

855-328-8004

EMAIL

team@scgwest.com

WEBSITE

retailrealestateadvisory.com