Co-Landlord appointment: Does it really work?
Capitalizing on the experiences, knowledge, contacts and expertise of two of the country's leading real estate services providers, Insular Life introduced co-landlord representation appointment - a first of its kind in the Philippines. KMC Savills is one of the two brokerage companies who got appointed in leasing out Insular Life Building in Ayala Avenue cor. Paseo de Roxas, Makati City.
KMC Savills' Executive Director for Marketing and Landlord Representation Services Yves Luethi, explains the advantages of this arrangement which is common across Europe and other parts of Asia.
"I believe the arrangement in place for the Insular Life Makati Building, where there is a co-landlord agreement in place, is advantageous for all parties involved in the deal."
• In Europe, Hong Kong and other parts of the world, these agreements are
commonplace. It is testament to the fact that the set up works.
• The client gets two lots of expertise, experience and insight which helps them
make informed decisions.
• The client gets to leverage on being exposed to the clients of the two brokerage
• This works for the leasing companies too, you can compare and contrast
experiences and expertise to help make the best decisions.
• Another big advantage is dual-brand awareness. Both companies might be more
well known in different sectors and this can help find tenants more quickly if you
both utilize your existing relationships and contacts.
• Overall, it's just the same as any arrangement in this business. If you have a good
relationship with staff on the other firm, with your client and potential tenants -
these sort of arrangements can work really well for all parties involved.
"It's the first deal of its kind in the Philippines. I think this is because previously companies have been reluctant due to differences in strategies. If the differences are insurmountable, it can lead to ineffective contract negotiations. I like to see KMC Savills as forward thinking and open to new ideas and approaches. We feel the co-landlord arrangement has worked really well for us and all parties involved will benefit."