Page 21 - Bulletin Vol 25 No 3 - Sept-Dec 2020 - Final

Guest Editorial

Three Pitfalls of Calling on Properties

Without Representation

“What It Can Really Cost You”

By Evan Gasman, Licensed Real Estate Salesperson New York
CARR Healthcare Realty

Finding a new location for your dental practice can be exciting. The prospect of a newly designed office and
growing your practice is an enticing adventure for many dentists. It's fun to imagine and dream of what is
possible. The process may start as you drive past vacant properties with a “For Lease” sign in front of the
building. Your natural instinct is to call the listing agent or the owner and ask “How much?” Seems
harmless, right?

Believe it or not, doing just that without representation can cost you up to six figures.

You might be saying, "Really? That seems like an exaggeration. After all, I'm a great negotiator, how hard
can it be to work out a good lease deal?” You’re right. Great negotiation skills are not exclusive to real
estate agents—many people are great negotiators. However, negotiation skills alone won't ensure a
medical tenant or buyer receives the best possible terms on their office lease or purchase. For that, tenant
representation by an experienced agent is crucial. While completing thousands of transactions annually
across the country, we have identified many pitfalls that occur when tenants call on properties without
representation:

LOSING MONEY ON THE FIRST PHONE CALL

On the very first phone call concerning a property, the listing agent or seller/landlord is evaluating the
posture of the prospect. Tone, interest level, experience level and options all come into play. Any perceived
weakness or inexperience will be used against the perspective tenant.

Lacking real estate market knowledge is the foundation of a weak posture. In a negotiation with six to seven
figures at stake, being able to decipher fact from fiction is essential to getting the best possible terms. For
example, listing agents routinely claim that certain concessions are rarely, if ever, offered by landlords. By
doing so, listing agents can convince uneducated tenants to accept deals that do not include common
landlord concessions such as tenant improvement allowance, free rent and more.

The reality is most landlords will offer attractive concessions, especially to long-term tenants who are
properly represented. Landlords routinely provide a free rent period during construction, as well as an
additional free rent period after the tenant opens for business. Landlords also typically contribute toward
construction costs in the form of a tenant improvement allowance or even offering a turnkey space. Knowing
how much of these concessions to request requires market knowledge and experience. Landlords don’t
provide these types of benefits to uninformed tenants.

Nassau County Dental Society ⬧ (516) 227-1112 | 21