Tenant Representation – The Debate Continues

Conference Table 4

Tenant Representation – the debate continues…

Study reignites debate about conflicts of interests in the commercial brokerage industry
http://on.wsj.com/11GpozH
This is a topic that has been highly debated and discussed in the industry for many years, and continues to be a point of discussion with clients and brokers alike across the globe. As a tenant representative in a firm who works only for tenants/buyers, I’m sure you can guess where my opinion falls. I believe it is a benefit to tenants/buyers to work with a firm who is looking out only for their interests in a transaction and not have to ever question whether I’m handling dual and opposing relationships in the way that I should be. As a tenant advocate, I feel it is my duty to ensure my clients never have to question which side of the table I’m sitting on when I bring suggestions to the table and I feel that is much easier to accomplish when I’m not also working for property owners. I don’t think it is impossible and there are great brokers out there in full service firms that manage it, but at what cost?

What are your thoughts? Can you truly manage a transaction in commercial real estate when you are representing both sides, and maintain confidentiality and fiduciary responsibility to BOTH clients?
Email me your thoughts!
jkeller@mckinneyadvisory.com