What A Conflict Of Interest Could Cost You


Is your building’s commercial real estate agent representing your interest? Did your previous commercial real estate broker represent you and your landlord?
Did you know as a Latino-owned business owner, it is in your best interest to hire a commercial real estate broker whose specialty is tenant representation services and buyer representation services?

It makes sense that a conflict of interest could hurt your bottom line. However, it typically goes unnoticed.

Why? The extra rent you pay but did not have to is attributed to the cost of doing business.  Our experience is that small businesses and companies frequently lose thousands of dollars by overpaying their rent.

The fact is, you don’t know what you don’t know. For instance, if a business owner (the tenant) pays $30.00 per sq. ft. for rent on the retail space or building but could have taken a competitive lease at $28.00 per sq. ft., that is a $2.00 per sq. ft. savings that went untapped, unused, and unnegotiated. If the lease is for a 5,000 sq. ft. retail space or building, then the unused rent is $10,000 per year. If the lease term is six years, the extra rent equals $60,000, not including escalations.

You can quickly see that if the commercial real estate broker is trying to represent you and a landlord’s interest, you might never hear about the less expensive lease alternative.

The bottom line is – conflicts of interest will cost you. As the second most expensive cost in running your business, next to payroll, your lease rents should represent your business model and your financial needs, not that of the Landlord. It would be best if you did not compromise because of a lack of representation.

That is why we at LA CHISPITA™ Bienes Raíces Comerciales, as a Latino-focused tenant representation and buyer representation brokerage, only represent one side at the negotiation table – yours!

We are an exclusive tenant and buyer representative brokerage firm curated for the Hispanic Business Community.

Our commercial real estate experts make it their business to understand your business, match the best properties, and advocate to negotiate terms with your business needs. We help business owners and entrepreneurs, real estate owners, operators, developers, and investors in the Hispanic Business Community throughout the 44 South Texas counties.

Did you know?

When you call the phone number on the FOR LEASE sign outside the building, you call the commercial real estate broker who represents the Landlord’s best interest.

We fulfill our company mission by building a movement.  Our mission is to create and sustain economic growth inclusion in the Latino Hispanic Business Community by making commercial real estate and business planning matters relatable and straightforward to understand.

Cumplimos la misión de nuestra empresa construyendo un movimiento. Nuestra misión es crear y mantener la inclusión del crecimiento económico en la comunidad empresarial hispana latina al hacer que los bienes raíces comerciales sean identificables y fáciles de entender.

Written by Monica Lopez

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