Your search is not in vain. We exist.

Looking for a tenant rep who’s smart, tough and un-conflicted?

Everybody says they are ‘smart’ and ‘tough’, but un-conflicted? Is that even possible?

At Wally & Co., you can have it all.

We never represent a landlord. We only represent tenants.

Why does this matter? I wrote a blog post entitled “Conflicts of Interest – Part 1: Why You Should Care” There’s also a “Part 2: My Unique Viewpoint from the Other Side.”

These posts explain:

• The subtle legalities that allow real estate brokers to represent both sides in a transaction,
• Why not being exclusively represented by a tenant rep costs you money, and
• How full-service firms try to implement ‘Chinese walls’ (and why they don’t work).

Just remember, if they’re representing both sides, they’re not truly representing you.

At Wally & Co., you, the tenant, are the highest priority.

Is it ever too early to start looking for office space?

Have you ever wondered, ‘when should I start to look for office space?’

It’s almost never too early. I wrote a blog post entitled “Time is Your Friend,” that discusses the importance of giving your real estate deal plenty of time, and what can happen when you don’t.

The 2 things to remember are:

• It’s better to start too early than too late for creating negotiating leverage, and
• It may not have any connection to when your lease expires

Every situation is unique so strategies vary. But if you think you want, or need, to do something different with your lease or your space, chances are we’ve had experience doing it.

At Wally & Co., we can help you figure out your timetable and so much more.

Wally & Co. exclusively represent tenants.  Please call us to discuss your next project  and learn why Wally & Co. wants to be your partner, not just a vendor.

Do you think of tenant reps as “glorified tour guides”?

I didn’t make that term up. I heard it from a prospective client once based on his experience with tenant rep brokers who didn’t seem to do anything but drive the client around – and collect a commission.

We are so much more. It’s our goal to be your partner, not your chauffeur. How do we add value to tenant representation?

It starts with understanding:

• What you want to do with your office space – relocate or renew – and why?
• What’s your budget?
• What will help you recruit and retain the best, most productive employees?
• What will impress your clients?
• What’s your timetable?
• And so on…

Then, we can intelligently advise you on what your choices are and create a strategy to get you the best possible deal on the best space for you.

Wally & Co. exclusively represent tenants.  Please call us to discuss your next project  and learn why Wally & Co. wants to be your partner, not just a vendor.

What does office space do for your company?

Most of our clients feel the most important aspect to finding office space is to help recruit and retain the best, most productive employees.

Most real estate brokers don’t focus on anything but buildings. They think that real estate is the “dog” and everything else is the “tail.” But we know that people costs are far more expensive than real estate costs. So your building is a tool that supports your “people priorities” by:

• being located within an easy commute from home
• being secure
• having enough parking
• having access to restaurants and other amenities
• having the right image. And so on…

The great news is we have done this analysis for many clients – both subjectively and objectively.

At Wally & Co., we understand that a great real estate deal needs to please the head of HR and the CFO.

Wally & Co. exclusively represent tenants.  Please call us to discuss your next project  and learn why Wally & Co. wants to be your partner, not just a vendor.

It is also difficult because the concept of “dual agency” (representing both sides in a transaction) is allowed by the Kansas and Missouri Real Estate Commissions, if it is disclosed.  So real estate conflicts of interest are acceptable in many persons’ eyes.

The reality is that conflicts of interest do matter because they cost you money.

Wally & Co. is structured to avoid conflicts of interest in several key ways.

First, no one in our firm lists property for sale or lease.  Our activities on behalf of clients are consistently focused on driving down occupancy costs of all types and negotiating the most favorable business terms.  Therefore, we aren’t ever in the situation that many agents get into where they are interchangeably advocating for higher prices when they are representing a landlord, and advocating for lower prices when they are representing a tenant.  To be in that position can erode the credibility, and more importantly, the negotiating strength, of an agent to the point of being ineffective.

Next, because we never represent a landlord, we are never concerned with the temptation, felt by many “dual agents”, that all landlords may be a prospective property-listing client in the future.  Such concerns may serve to soften that agent’s negotiating aggression on the part of a tenant rep client like you.

Wally & Co. exclusively represent tenants.  Please call us to discuss your next project and learn why Wally & Co. wants to be your partner, not just a vendor.

If you are a tenant you want to be represented by someone who has no loyalty to anyone except tenants. But often, that’s easier said than done.

Depending on what state you are in, without a legal statement declaring a specific kind of “agency”, John Doe’s firm, XYZ Realty, can equally represents all its clients, including landlords, while representing you, the tenant.  In fact, many states allow “dual agency” or “transaction brokerage” which in effect  allows them to assist both parties without being an agent or advocate for either party.

Simply stated, John Doe may not have a fiduciary duty to represent your interests.

This is when the full service firms start talking about the “Chinese Wall” they have erected to protect the interest of tenant clients from those of landlord clients.  A Chinese Wall is defined as, “The ethical barrier between different divisions of a financial (or other) institution to avoid conflict of interest.”

Here’s why Chinese Walls don’t work in practice:

What if John Doe represents you and he has a listing on a building at the same time?  It’s impossible for Mr. Doe to split himself, yet he owes a fiduciary duty to both you and a landlord.

What happens when John Doe goes to a weekly sales meeting at his full service firm, with brokers representing both landlords and tenants in attendance, and he is expected to report on his activities? Your deal gets discussed even if it may not be in your best interest.

Who does John Doe serve when the size of the commission(s) he will earn from a landlord client far outweighs the commission he will earn representing you the tenant?  Does he honor greed or ethics?

What does John Doe do when his boss (his state-licensed Broker) says, “Back off on how hard you are negotiating the terms for your tenant client because you are ruffling feathers with our landlord client.”  This really happens because XYZ Realty stands to make far more money from the landlord listing than it does from your tenant rep assignment.

I have been with big firms.  I know how they work.  The above is reality and conflicts of interest do matter because they cost you money.

Wally & Co. exclusively represent tenants.  Please call us to discuss your next project  and learn why Wally & Co. wants to be your partner, not just a vendor.

Most of our posts describe the numerous complexities involved in new lease or lease renewal situations.   We’ve discussed that there are over 25 financial components of a lease and the intricacies of how landlords measure office space. We’ve discussed how to maximize the advantage of timing when it comes to starting negotiations.  And we have discussed the complexities and different perspectives about ever-changing market conditions.  And we’ll discuss more, similarly complex issues, in future posts.

But what struck me about the phrase, “the term “complex” is almost too simple,” is that we haven’t talked about coordinating all these pieces of the tenant representation process into a cohesive, successful strategy.   That is where the real art, and challenge, of representing tenants comes into play.   I submit that none of this is easy, which is why I think tenants need to be exclusively represented in the first place.

We believe the real differentiator between us and our competition is our ability to create (and execute) a strategy combining all these complex, diverse pieces in a way that will succeed both for the tenant and the landlord.  This is best explained by another of my favorite phrases, “this isn’t cookie-cutter stuff.”    No two deals are alike.  Timing, market conditions, the mood about the economy and a long list of other things must be understood in order to create the right strategy.

Regardless of when your lease expires, let’s talk soon to get to know each other, discuss your real estate goals and let us demonstrate to you why Wally & Co. is a partner, not a vendor. Contact us today.

There is a big red flag we warn all our clients about – the 20 percent discount promise.

Typically, this is a cold call scenario where the commercial leasing agent tries to get a meeting with a prospective client by offering a 20 percent discount. Of course this works because everyone wants to save money. So the agent gets the meeting. What the prospective client doesn’t know is this offer is just a quick way for the agent to get their foot in the door to engage the company for tenant representation services (plus the agent knows there’s no real way to prove they actually got the discount by the end of the deal).

The question you need to ask is, “20 percent discount off of what?” In simplest terms, the discount is taken off the monthly rental price, but if the landlord’s quoted rental rate is too high, the discount won’t amount to much. While the rent rate is important, the bigger issue is how much the landlord is willing to give to make the space meet your needs. So you may get 20 percent off the rent, but get an inadequate deal on the tenant finish allowance.

The truth is, the only way to analyze a deal is a holistic, across the board analysis, i.e. what is the rent price, yearly operating expenses, what tenant finish allowance are you getting, how much is the security deposit, etc. In order to judge the percent of savings you get you must dissect more than 20 components of the lease to find the true savings. Plus, every lease agreement is different – one tenant may get a big discount because of their size, another because the landlord has a large vacancy. So it’s tough to validate a broad statement like, “we can get you can get a 20 percent discount” because the circumstances from lease to lease are different.

It’s important to note that most of the people offering these discounts are not liars or cheats; they’re just oversimplifying the process. Why? Because cold calling is hard and they are trying to “hook” you with something simple and quick. Plus it’s almost impossible to know what discounts the tenant can get prior to being engaged and working on the deal. So be wary of an agent offering discounts before they even know what your current lease says. As always, it’s best to find a tenant representation partner who can analyze your lease agreement and find the real savings.

No leasing agent? Wally & Co. has you covered. We represent tenants and tenants only in commercial property leasing. We have no ties, no partnerships and no agreements with landlords. What does that mean to you? We’re your partner, not a vendor. That means we’ll find the space that suits your needs and comb through the lease and negotiate the best terms for you.

So, is there a difference between being represented by a big national firm vs. Wally & Co.?

Let’s start by understanding that virtually all of the national firms proudly state they should represent you because they have a “global outsourcing platform” for services ranging from all forms of brokerage, property management, facility management, project management, capital markets, development, investment, valuation advisory services, and more.   The inference being that a cast of thousands is at your beck and call to provide whatever services you need wherever in the world you need it.

But what you need is the best tenant representation team for your office space in metro Kansas City.  So are the big firms better?

I have been with big firms.  I know how they work.  The reality is that tenant reps typically operate in teams of one or two people.   Some of these “teams” are exclusively dedicated to tenant representation. Some are doing both tenant rep and landlord rep.  Either way, the team is small.

So the comparison you need to make is between the teams consisting of the brokers who will represent you on the ground in Kansas City – not the thousands of corporate employees spread around the world.   And it’s in your best interest to find a team that exclusively represents tenants and not landlords too.

Wally & Co. exclusively represent tenants.  Our team used to be the tenant rep team at CBRE, and before that at Trammell Crow Company.  We’re the same team that qualified for the TCC’s Top 40 brokers three separate times.  We do everything we did in those days, and more, for our clients today.
Please call us to discuss your next project and learn how to make Wally & Co. your partner, not just a vendor.

Okay, but what about the positive effects for tenants resulting from an increasing supply of quality office space in one of the metropolitan area’s most desirable office submarkets?  Or the fact that some tenants may be motivated to move, expand or renew by greater supply and lower rental rates?  Or that the availability of numerous big blocks of contiguous space in quality buildings may attract new businesses simply because it boasts attractive rates?

It’s all about timing and perspective.

The worst timing I recall was in the late 1990’s and early 2000’s because there was single digit vacancy and high tenant demand, resulting in high rental rates.  Kansas City lost some deals because there wasn’t any quality space to lease and/or the tenants couldn’t afford it anyway.  Ironically, low unemployment here made recruiting difficult, creating a second hurdle to new business attraction.

Perspective-wise, while landlords and tenants need each other, the Business Journal article seems to suggest that what’s bad for developers/landlords is bad for Kansas City.  Because we exclusively represent tenants, including one that just leased 175,000 square feet of sublease space at the Sprint Campus, we think more choices and lower rates are a good thing.