Sean Mangialardo 2010
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July 30, 2010
What can T.O.'s signing with the Bengals teach us about Commercial Real Estate? You might be surprised:
Terrell Owens signs a contract to play for the Cincinnati Bengals. His agent, Drew Rosenhaus, negotiates the deal. Owens
would never deal directly with a team and thus hires an agent to act and aggressively negotiate on his sole behalf. What if
Owens’ agent represented both he, the Bengals, and say, another team in the league? How would this affect the signing
process? How would both his goals and a team owner’s goals be met by an agent who would have to take a “neutral
position” in the transaction?
In commercial real estate, most agents represent both landlords and tenants. It’s certainly within the law (with appropriate
disclosure), but is it in the best interests of both parties, particularly the tenants? A landlord is already more familiar with the
real estate landscape because he’s in the business. So is his listing agent. However, a tenant, typically in a non real estate
related field, is most likely not as in tune with the marketplace. Because of this fact, a tenant decides to hire an agent, just as
Owens did, to “level the playing field” so to speak. But, what if the agent the tenant hires also represents landlords and lists
their current building and/or a building they’re interested in moving to? Has the tenant really bettered his position at the
negotiating table all that much?
Instead, tenants should consider hiring an exclusive tenant agent who only represents tenants/buyers and never represents
landlords or investors (no listings). This way, the focus remains solely on their objectives, giving them the competitive
advantage they deserve. With an agent exclusively on their side, they can gain considerably at the negotiating table. In today’s
very soft market, where millions of square feet are available for lease, a tenant who has leverage on its side stands to land
even more lucrative deal terms.
So, take it from a future Hall of Famer, and hire an agent that has only your interests in mind!
Sean Mangialardo, Principal
CresaPartners
What can T.O.'s signing with the Bengals teach us about Commercial Real Estate? You might be surprised:
Terrell Owens signs a contract to play for the Cincinnati Bengals. His agent, Drew Rosenhaus, negotiates the deal. Owens
would never deal directly with a team and thus hires an agent to act and aggressively negotiate on his sole behalf. What if
Owens’ agent represented both he, the Bengals, and say, another team in the league? How would this affect the signing
process? How would both his goals and a team owner’s goals be met by an agent who would have to take a “neutral
position” in the transaction?
In commercial real estate, most agents represent both landlords and tenants. It’s certainly within the law (with appropriate
disclosure), but is it in the best interests of both parties, particularly the tenants? A landlord is already more familiar with the
real estate landscape because he’s in the business. So is his listing agent. However, a tenant, typically in a non real estate
related field, is most likely not as in tune with the marketplace. Because of this fact, a tenant decides to hire an agent, just as
Owens did, to “level the playing field” so to speak. But, what if the agent the tenant hires also represents landlords and lists
their current building and/or a building they’re interested in moving to? Has the tenant really bettered his position at the
negotiating table all that much?
Instead, tenants should consider hiring an exclusive tenant agent who only represents tenants/buyers and never represents
landlords or investors (no listings). This way, the focus remains solely on their objectives, giving them the competitive
advantage they deserve. With an agent exclusively on their side, they can gain considerably at the negotiating table. In today’s
very soft market, where millions of square feet are available for lease, a tenant who has leverage on its side stands to land
even more lucrative deal terms.
So, take it from a future Hall of Famer, and hire an agent that has only your interests in mind!
Sean Mangialardo, Principal
CresaPartners
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