Cooperation between Broker & Attorney when Negotiating Commercial Leases

I have been participating in an ongoing discussion having to do with fixed fee billings as part of the Corporate Real Estate Group of Linkedin.  I thought I would share in this post a portion of that discussion relating to cooperation between the client, attorney and broker when negotiating a commercial lease.

Allen McBride, Senior Vice President at Transwestern commented that:

"As a commercial real estate broker with 25 years experience, I don't see how an attorney can properly negotiate business terms of a lease without the benefit of being in the market. I whole heartedly agree that a commercial real estate attorney is vital to negotiating a successful lease document, but I believe that it would be ill advised not to consult a real estate professional for market knowlege. How that real estate professional gets paid can vary."

I responded as follows:

Changes to the legal terms of the lease, may and often do effect the business terms of the lease. Therefore it is imperative that the attorney is in constant communication with the attorneys client to make sure that the business terms are not altered or if they are, the client is aware of the changes and approves those changes. To the extent that the client authorizes it, keeping the broker in the loop and part of the process is highly recommended, assuming that the broker is qualified and competent. 

As General Counsel and Director of Real Estate for Allied Education Corporation, I served, not only as the attorney, but as the broker and client. When we were looking to lease in a jurisdiction in which I was not familiar with the market, I always associated with a local broker, who was an indispensable source of information on the local market and requirements. 

There is nothing better than working in a good team. When really good lawyers and brokers work together, there is a high level of confidence and trust and rather than having opposing interests, they have the congruous purpose and direction of acting in the best interests of their client. Isn't it sweet to do a great job for the client and make money while you are at it?

I might add that I have been licensed to practice law in California since 1976, became a real estate salesperson in Manhattan, N.Y. in 1984 and first became a licenses California Broker in 1985,