What is tenant representation in commercial real estate?
Tenant representation is when a commercial broker acts only for the business that will occupy the space, not the landlord: defining the requirement, searching the market, comparing options and negotiating the lease. Tenant reps are usually paid through a commission the landlord pays, so the tenant often pays no direct fee. Their hardest job is reaching companies before a requirement is public, and Scayled helps with it by listing the companies around a building and across the market that fit, naming who decides on space at each, and tracking them for hiring, new sites, funding and lease events.
- What does a tenant rep broker do?
- How are tenant rep brokers paid?
- When should a tenant hire a tenant rep?
- How is tenant rep different from landlord rep?
- How do tenant rep brokers win new clients?
What does a tenant rep broker do?
A tenant rep runs the tenant's side of the process. They work out how much and what kind of space the business needs, survey the market including off-market and sublease options, arrange tours, request proposals from landlords, compare total occupancy costs, negotiate rent, incentives, term and options, and coordinate with lawyers, architects and project managers through to move-in.
For a renewal, the same work creates leverage: a credible relocation option often produces a better renewal offer from the current landlord.
How are tenant rep brokers paid?
Usually by a commission paid by the landlord, calculated from the value of the lease and shared between the landlord's and tenant's brokers. The tenant signs a representation agreement that sets the terms, often including what happens if the landlord will not pay a commission. Some tenants pay a fee directly, particularly for consulting work or in markets where landlord-paid commissions are less common.
The incentive question is worth understanding: a commission tied to lease value rewards larger, longer leases, so good tenant reps are explicit about how they are paid.
When should a tenant hire a tenant rep?
Well before the lease decision. Common guidance is to start 12 to 18 months before expiry for a mid-size office or industrial requirement, and longer for large or build-to-suit needs, because finding space, negotiating, designing and fitting out all take time. Notice dates for renewal options can fall well before expiry.
Growth or contraction can trigger a search at any time: a new team, an acquisition, a contract win or a decision to consolidate. These events are often the moment a company chooses its advisor, which is why tenant reps watch for them. Tenant movement tracking explains how.
How is tenant rep different from landlord rep?
The client is different. A tenant rep acts for the occupier and is paid to get the best terms and fit for the tenant; a landlord rep acts for the owner and is paid to lease the space at the best terms for the landlord. When one firm represents both sides, most markets require disclosure and consent, and many large tenants avoid it.
The prospecting is also different. Landlord reps start from a property and find businesses that might take it. Tenant reps start from companies and find the right property, so they need to know which companies are approaching a decision. For the office side, see how to get office leasing leads.
How do tenant rep brokers win new clients?
By being known to the company before the requirement exists. That means mapping the companies in a market, knowing roughly when their leases end, watching for growth and contraction, and offering useful information such as occupancy cost benchmarks or a view on the market well ahead of any search.
Scayled supports that. From a building where you have a client or a deal, it lists the companies around it with the person who decides on space, and a Target Scan finds companies elsewhere whose size and use fit. Every company is tracked for hiring, new sites, funding and lease events, which is the core of occupier intelligence. Outreach is drafted per company and sent from your own inbox, and the 3-day free trial at /start includes 4 scans.
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