If your involved in running a business and are considering what steps to take to deliver culture and a productive environment for your team, listen up. This article is going to expose a huge issue in the commercial real estate industry, conflicts of interest. Not in brokerage, but in Project Management Owner's Representation.
We've all heard the sales pitch from Tenant Rep Real Estate brokers, "hire us and we won't represent the landlord" thereby eliminating any conflict of interest. That is true in the brokerage business and after working with the largest tenant representation firms in San Diego, I believe the Tenant Rep sales pitch is accurate and valid.
I want to attack another facet of the business, Project Management and Owner's Representation. After working with these brokerage firms and ultimately forming my own INDEPENDENT Project Management firm I've realized that there is an unspoken Conflict of Interest issue in existence. Project Management Owner's Reps working for a brokerage company aren't working in isolation, they are working with a team of brokers and those brokers are driving the train on the selection of architects, engineers, and general contractors. For example, your company just signed a lease and it's time to select an architecture firm, but the Project Manager works for the brokerage company who represents architects, engineers, and general contractors in their lease and purchase transactions. So which architecture firms are going to make the short list? You nailed it, the firms that are out looking for space in the next year. The brokerage firms deny that this happens, but I've been in meetings with tenant rep brokers who literally said "I don't care who bids the job, as long as XYZ Company gets the work." Does that seem right to you? Shouldn't Project Management OWNER's Representatives act only in their client's best interest ALL OF THE TIME? Brokerage firms sell Owner's Representation as a service to their clients, but ultimately the decision making is structured to benefit the real estate firm, not the tenant.
This is not right, and it's the #1 reason we created our business, a 100% independent Owner's Rep Project Management Firm. We are a FIDUCIARY for our clients, acting only in their best interests and not allowing any broker or other influencer to push for one vendor versus the other. That's why we use the word FIDUCIARY, because that's what we are and that's NOT what you are getting when you hire a brokerage firm to provide Project Management services.
If your considering relocating your business, let us provide a free Office Space Efficiency Evaluation. We'll come to your office and tour the space, giving you tips and tricks to get the most bang for every dollar and every square foot of valuable space. We work with real estate brokers on almost every deal, and they love us for one reason, we make them look like heroes by delivering client satisfaction. We're involved from analyzing total square feet required to handing over the keys. When you hire our firm, we treat every dollar like it was our own, acting as a true FIDUCIARY for our clients.
Companies like Tony Robbins, General Dynamics NASSCO, and the San Diego Natural History Museum TRUST our firm. We are experts in Project Delivery and Corporate Relocations - WRIGHT Real Estate Project Management - www.wright-realestate.com (in case this wasn't clear, WE AREN'T BROKERS).
Tim M. Wright, P.E. is the founder of WRIGHT Real Estate Management. For more information schedule a FREE CONSULTATION, visit wright-realestate.com, or email firstname.lastname@example.org.