Yes! Yes! Yes! At the end of the day whether the broker is representing the landlord or the broker is representing the Tenant, they are both paid on commission.
Yes, it’s true that Tenant Rep Brokers are paid by the Landlord’s Real Estate Broker, or Listing Broker, and many Tenant Rep Brokers will tell you they don’t cost the Tenant anything. Which to an extent is true. BUT, and this is a big but…
A Tenant Rep Real Estate Broker is paid on the same commission structure as the Landlord’s Broker. What does that mean? Well, the higher the rate of rent, the less abatement’s of rent, the smaller the Tenant Improvement Allowances, etc., then the higher the resulting commission will be for both brokers.
It’s difficult to aggressively negotiate lower rental rates for a Tenant when they know that it will reduce their commissions!
That’s why it’s important to have an Owner’s Representative who is skilled and experienced with commercial lease negotiations to advocate on your behalf. This is why an Owner’s Rep working only for the Dentist looking to start a new office, relocate an existing office, or re-negotiate an existing lease is so valuable. They do not have a stake in the final numbers. Except to get them as low as possible for the benefit of their client!
Even though the Dentist does not have to “write the check” to the Tenant Representative Broker, they will have to write the check for years to come to pay for the commissions of the brokers, whose costs are implicitly built into the rent rate.
ABSOLUTELY!! Here’s why. A good Dental Practice Management Consultant (DPMC) is worth their weight in gold! But more often than not, they don’t possess the experience that Denali has when it comes to site searches, location due diligence, lease negotiations, and demographic studies & interpretation. Moreover, they usually don’t have the dental construction experience that Denali possess. Most DPMC’s have never worked in the construction industry, nor even the real estate profession the way the team at Denali has done.
The Denali Group can complement an experienced DPMC immensely with our Physical Consulting services, or even our Marketing Management Services!
This depends heavily on the Client/Practitioner. Denali has “Fast Tracked” projects in the past. However, on a normal project it can take anywhere from ten months to over a year-and-a-half to successfully accomplish all phases from concept, geographic determination, specific property site locations, lease negotiations, office design, construction drawing compilation, actual physical construction build-out, and all equipment placement. Our typical construction period of a dental office is typically eight to ten weeks—which is almost unheard of in the dental industry. A well-managed project should not take the typical industry standard time of three or four months (or longer!).
Again, all this depends on the Practitioner and is also largely dependent on third parties such as banks, landlords, and other service providers.
The Client ALWAYS makes the final decision. Denali’s role is to analyze, research, negotiate…and then provide concise detailed information in a digestible format so that the Practitioner can make their own well informed decisions. We don’t make the decisions for you, we instead arm you with complete information so you can then make the decisions that are right for you!