Next in our examination of the Tempus model, we will turn our attention to how the Tempus process uniquely acknowledges brokers. As we have already seen with sellers and tenants, the Tempus model delivers an experience far from the norm, for each member of this collaborative ecosystem. For brokers, the difference is just as profound.
Unenlightened views of brokers label them as a costly obligation in the real estate investment realm. Brokers often receive several percentage points of a property’s value in the form of commissions between purchases, sales and leasing activities. Because real estate is usually owned with leverage, the impact of these costs is magnified in terms of a percentage of the owner’s stake. The natural and common response to this dynamic is to try and limit this cost, either through stringent negotiation with third-party brokerage providers or by bringing the function entirely in-house. This mindset disregards the merit this position holds in the overall balance of the system and is as counterproductive as the gardener who eradicates the bees because he finds them a nuisance.
How Tempus Delivers Value to Brokers
Tempus understands the challenges and concerns brokers face in typical transactions. As we touched on when examining sellers, buyers and sellers typically approach each other as opponents, and brokers have the often arduous task of bringing these opposing sides together. Here, Tempus’ focus on truly valuing sellers is an important factor for brokers making their job reconciling the two parties smoother. Additionally, Tempus recognizes that brokers are under constant pressure to reduce their fees to bridge the gap between buyers and sellers. This tactic, while intended to help all parties complete their goal for a transaction, cuts squarely against the idea that the parties truly value what brokers bring to the process. Tempus avoids employing this tactic in their transactions by seeking to capitalize on the countless ways that engaged and energized brokers can add value to the process instead. In addition to this fundamental difference in approach, Tempus employs a bevy of other fringe benefits to brokers such as letting them invest in deals without fees to Tempus, inviting them to corporate events and sending them regular notes and gifts, all of which reinforce the message that Tempus truly values the brokers in our network.
How Brokers Benefit Tempus
Brokers are exposed to a wide range of styles in the commercial real estate industry and are accordingly quick to recognize the difference in the Tempus model. When brokers recognize that a deal with Tempus is likely to be easier to execute, and they won’t have to face having their income reduced, it’s an obvious choice for them to want to do more deals with Tempus. When offers on prospective deals are a virtual dead heat, their recommendations can significantly influence who is selected. In addition, brokers are uniquely positioned to see off-market and proprietary investment opportunities. Tempus being the party they choose to call when these situations arise is extremely valuable to our platform.
Now that we have touched on sellers, tenants and brokers, it is time to switch our focus to lenders. While sometimes overlooked, lenders make up an important part of the ecosystem. Stay tuned next week to see how Tempus takes a unique approach to our relationships with them.
Dan Andrews
CEO and Managing Partner
