Negotiating a commercial lease, the other side of the story

To the Editor:
In a guest column (“It pays to negotiate your commercial lease,” May 2, 2011), Dale Willerton, a real estate “consultant,” states real estate brokers normally do not represent tenants. Mr. Willerton could not be more wrong.
Real estate brokers in Rhode Island generally represent both sides of a transaction. We represent landlords and tenants. A fee is split between both brokers. We would argue the tenant is actually paying the fee in rent, and the landlord simply amortizes those costs over the term of the lease. Unfortunately for some tenants, they do not understand this arrangement and do exactly what Mr. Willerton suggests; which is investigate each building without any representation and negotiate with a landlord and a landlord’s broker, who know the market inside out.
Generally it costs nothing upfront to hire a broker whose fee is included in the rental rate. Mr. Willerton should talk to Morgan Stanley Smith Barney, MetLife, Edwards Angell Palmer & Dodge, Brown University, Bank of America, USI, Konica Minolta, Mass Mutual Insurance, Hasbro, 38 Studios and just about every other tenant in the Rhode Island market. These tenants would never negotiate a lease in Rhode Island without hiring a professional commercial real estate broker.
Karl Sherry
Partner, Hayes & Sherry Real Estate Services