The commercial property market is riddled with conflicts of interest. When one advisor represents both the seller and buyer of a single commercial property simultaneously, the tenant will end up getting a raw deal. This is usually in the form of higher prices & less favourable leasing terms.
RICS describes a conflict of interest as “anything that impedes or might be perceived to impede an individual's or firm's ability to act impartially and in the best interest of a client.” There are a number of reasons why this occurs, including:
- financial incentives
- personal relationships
- commercial relationships/obligations
- where the interests of your firm conflict with those of the client
What commercial property tenants say
A recent survey of UK commercial property tenants highlights the scale of the issues these conflicts of interest cause:
- Nearly half (42%) had direct experience of these conflicts arising during a property transaction.
- 95% did not think it fair for a commercial property agent to advise both the landlord and tenant in the same transaction.
- Three quarters had never received any guidance from a property advisor about these conflicts of interest.
- 97% believed that this issue should be better governed.
DeVono – overcoming commercial property conflicts of interest
DeVono is the pioneer of occupier-only representation in the commercial property sector. We recognise that loyalties are traditionally held with landlords, leaving occupiers at a disadvantage. And we believe that conflicts of interest can only be resolved with openness and transparency of information at every stage.
We’re here to offer a unique alternative to the vast majority of commercial property agents and advisors. By acting solely on behalf of tenants, we help them achieve the most competitive terms on their commercial premises.
Significant cost savings
Since we started in 2003, in London alone we’ve saved our clients over £285m by securing the most competitive terms on their commercial leases.
Find out how DeVono can help you in your commercial premises strategy, search and negotiations – complete the below enquiry form or call us on +44 (0)20 7096 9911.