Did you know Roger Staubach is largely responsible for ‘tenant rep’ role? Here’s how it works The role evolved in the mid-1980s and was created, in large part, by Roger Staubach, who went from legendary Dallas Cowboy quarterback to real estate mogul. Dallas Cowboys former quarter back Roger Staubach is largely credited with creating the role of “tenant rep” in commercial real estate. In his early years with the NFL, Staubach worked in real estate during the off season. After retirement went on to become a real estate mogul. His firm was sold to JLL for some $640 million in 2008. (AP Photo/Sharon Ellman) By ALLEN BUCHANAN | abuchanan@lee-associates.com | Southern California News Group Columnist PUBLISHED: April 15, 2019 at 6:30 am | UPDATED: April 15, 2019 at 7:43 am A commercial real estate professional’s work is generally divided between listings in two ways: representing an owner or helping find a building for tenant or buyer. Today, I delve into the world of buyer and tenant representation, also know as “tenant rep.” By the way, this genre of commercial real estate practice evolved in the mid-80s and was created in large part by Roger Staubach, who went from legendary Dallas Cowboy quarterback to real estate mogul. When do you need a tenant rep broker? This happens most typically when the current physical plant no longer can house the operation, or just the opposite and the company is swimming in excess square footage. An expiring lease means one of three decisions must be made: stay and extend the term, move or stay month-to-month. Mergers and acquisitions can create a “Brady Bunch” of facilities with a consolidation warranted. Opening a location in a new market creates certain search criteria. Sure, you could attempt to navigate the waters without help, but you might recall what someone once said about a person who represents himself. What is typical? Standard among most practitioners in this space is an engagement agreement whereby you, the occupant, “hire” the broker to conduct a search and market your requirements. Included in this marketing is a notification sent to cooperating professionals, solicitation of owners with buildings meeting the criteria, and a vetting of potential buildings submitted for consideration. Who pays? The cool thing about engaging a tenant rep is the owner of the building pays him. You may be thinking, I know I must somehow pay more. In actuality, you don’t. Most market lease rates and sales prices contemplate a broker fee. If you forego representation, you’ll pay more because you lose the benefit of her market knowledge, which often leads to more favorable rates and terms. Are other services included? In some instances – yes! Many tenant rep outfits employ project managers, space planners, architects, and move advisers. All are included with no cost to you. How does the process work? Steps may vary but generally you engage the professional, your requirement is clearly defined, marketing collateral is created, your requirement is published to the brokerage community, submittals are received and vetted, buildings are previewed, alternatives are toured, requests for proposals are submitted, proposals are received and compared, negotiations commence, negotiations are finalized, a lease or purchase agreement is signed, the deal is closed, improvements to the space — if any — are completed and you move in. Whew! Now you understand why you shouldn’t try this untethered. It’s a complicated process with many steps. Allen C. Buchanan, SIOR, is a principal with Lee & Associates Commercial Real Estate Services in Orange. He can be reached at abuchanan@lee-associates.comor 714.564.7104.