Commercial Investment Real Estate November/December 2017 | Page 37

Mindset
Transforming Brokers
Brokers may think they don’t need the user expe-
rience mindset. After all, the landlord is the one
who’s responsible for the space, right? All brokers
have to do is lease it.
In reality, brokers need to understand these
changes even better than landlords. As the liaison
between landlords and tenants, brokers need to
show potential tenants that a space can meet their
flexible desires, shifting expectations, and specific
business needs. Many methods can accomplish that,
but they link back to the user experience mindset.
Brokers’ future success will depend on their abil-
ity to understand and meet the needs of the modern
tenant. And top priorities for these modern tenants
are talent retention, enhanced productivity, and
business flexibility.
First off, brokers have to recognize that tenants
need agility. Whether it’s a 50-year-old law firm or
two-year-old start up, their market dynamics and
customer needs are changing faster than ever.
As a result, for many companies leasing space,
long-term leases just don’t fit. They require shorter-
term leases that give them the flexibility to quickly
expand their space or contract the square footage
based on changing headcount and strategy. This
CCIM.COM
is a difficult shift to make because it’s at odds with
how brokers are compensated.
Regardless, the modern broker needs to be able
to perform a diagnostic of the organization’s space
needs. The result will likely be a hybrid that consists
of variables such as:
• X% stable long-term branded space
• Y% moderately flexible space for a one- to three-
year term
• Z% highly flexible short-term space, such as
month-to-month
Brokers then need to guide their clients through
this discussion, and assist them in how they can
best achieve it.
Additionally, the tenant evaluation matrix is
meaningfully different compared to five years
ago. The new must-have amenities are no longer
just about the physical space outlined in the lease
agreement.
Now what’s outside, both in the building and the
surrounding neighborhood, is just as important to
tenants’ experience. They should be asking the fol-
lowing questions and scoring buildings as outlined
below. If they’re not, then it’s the broker’s job to
ensure they are.
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