A Real-Life Expensive Lesson from Not Hiring a Tenant Rep, with Michael Bull, Bull Realty
Michael Bull: [00:00:00] And there’s about 100 clauses in leases that are extremely important to tenants. So, I think what we want to do as advisors is really understand their business, and their goals, their challenges, their plans, look at their competition, look at their sector. And then, try to help them figure out what’s most important to them in the future. And a lot of times when you do that, you help them with something that they don’t know until a year or two or three down the road and they need it. And you’ve taken care of it for them in the least because you realized it was important.
Michael Bull: [00:00:40] Quick example, Larry called me one day, he does real estate residents for closings. He said, “Michael, quick question for you. Another residential real estate closing office opened in my center, my business went down 50 percent day one. My margins are ten percent. I’m losing money.” I said, “Well, let me ask you a question. Look at your lease and see if you have a non-compete clause with that landlord for that business.” He said, “I’ll check.” He calls me back 15 minutes later, “I don’t have that.” Then, I asked him, I said, “This is just a curiosity question. Who was your tenant rep when you did that lease?” And this is what he actually said, “I saved that money.” They did it themselves, right?
Michael Bull: [00:01:20] And most big law firms hire ten reps. So, I think if you’re a tenant, make sure you have a great tenant rep. If you’re ever going to hire a commercial real estate broker for anything to do anything, if you have a business and you need space, that’s the time to hire one.
Michael Bull, President, Bull Realty
Michael Bull, CCIM, founder and CEO of Bull Realty, is an active commercial real estate advisor. He is a licensed broker in nine southeast states and has assisted clients with over 6 billion dollars of transactions over his 35-year career.
You may know Michael as host of America’s Commercial Real Estate Show. The popular weekly show began broadcasting in 2010 and today is heard by millions of people around the country. Michael and other respected industry analysts, economists and leading market participants share market intelligence, forecasts, and success strategies.
Listen to the full Exit Exchange interview here.
The “One Minute Interview” series is produced by John Ray and in the North Fulton studio of Business RadioX® in Alpharetta. You can find the full archive of shows by following this link.
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