Commercial Tenant Representation

Commercial landlords budget a leasing commission into every deal, and it’s typically split between the listing agent and the tenant’s agent. If you show up unrepresented, the listing agent usually keeps the full amount. You aren’t saving money by going alone — you’re just going without representation. On unlisted or off-market space where no commission is offered, the arrangement is discussed and agreed in writing upfront, before any work starts.

I have consistently been able to push free rent out to two or three months rather than the one or two landlords tend to open with. The larger savings, though, come from things tenants do not think to raise at all. Extra storage space, the number of parking spots included, and signage access are the three that get forgotten during negotiation and then reappear as extra charges once you are in the building. I also push hard on term structure — a length the tenant is genuinely comfortable with, plus renewal options if there is any chance they will want to stay longer.

A landlord’s representative is hired by the property owner to market the space and secure the best terms for the owner — the highest rent, the strongest covenant, the least concession. A tenant’s representative is retained by the business leasing the space and works to secure the best terms for the tenant. Both are legitimate roles, but they are opposing interests in the same negotiation. The agent whose sign is on the building represents the landlord, not you, regardless of how helpful they are.

In most listed commercial leases, no. The landlord pays a leasing commission that is split between the listing agent and the tenant’s agent, so representation comes at no direct cost to you. If you approach a listing unrepresented, that commission generally goes entirely to the landlord’s agent rather than being returned to you as savings. On off-market space where no commission is offered, the fee arrangement is agreed in writing before any work begins.

You can, and some experienced business owners do. The difficulty is that you’ll negotiate a handful of commercial leases in your career against a landlord and listing agent who do it constantly, and you generally won’t know what concessions are currently available in the market. Since representation is usually landlord-paid on listed space, the practical question isn’t whether it’s worth the cost — it’s whether you’d rather have that commission go to the person negotiating against you.

Six to twelve months before you need to occupy, and earlier if you require significant build-out or a zoning change. The search itself takes one to three months, negotiation another four to eight weeks, and permits and construction can easily take three months more. Starting early is the cheapest leverage available — a tenant with time can walk away from a bad deal, and landlords can tell the difference. If you’re renewing, start twelve months out so you have a credible alternative before the renewal conversation.

Yes, and renewals are frequently where the most value is recovered. Landlords know relocation is expensive and disruptive, so renewal offers often come in above market. Deep will benchmark your renewal terms against current comparables and, where it makes sense, run a genuine search for alternatives — because the credible ability to leave is what actually moves a renewal number. Start this process about twelve months before your term expires.

Get Someone on Your Side of the Table

Whether you’re searching for new space or facing a renewal, a conversation costs nothing — and in most listed deals, neither does the representation.

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