By Patrick Mohney ·
If you have ever called the number on a 'For Lease' sign, you were talking to the landlord's broker. That broker has a legal and financial duty to the landlord. A tenant representation broker is the opposite: someone who works only for the business that needs space.
What a tenant rep broker does
- Clarifies your needs: size, location, budget, layout, parking, loading, power, and timing.
- Searches the entire market, not just one landlord's buildings, including space that is not widely advertised.
- Schedules and attends tours, and points out issues you might miss, like HVAC age, loading limits, or zoning restrictions.
- Requests competing proposals so landlords bid for your business.
- Compares offers on total cost over the full term, not just the advertised rate.
- Negotiates the letter of intent and works with your attorney on the lease.
- Helps coordinate build-out and keeps the landlord to its commitments through move-in.
Who pays the tenant rep broker?
There is typically no fee to the tenant. In most commercial lease transactions, the landlord pays the brokerage commission under its listing agreement, and that commission is shared with the tenant's broker. Arrangements vary, so a good tenant rep will explain exactly how they are compensated before you sign anything.
When should you hire one?
Bring in a tenant rep before you start touring, ideally before you contact any landlord directly. Once you have engaged with a listing broker, some of your leverage is already gone. The same applies to renewals: involve your representative well before your lease's notice deadlines.
Does it matter for small spaces?
Yes. Smaller tenants often have the least experience with commercial leases and the most to lose from an unfavorable clause, such as a personal guarantee, uncapped expense pass-throughs, or no right to sublease. Good representation is about the terms as much as the rent.
Blue Rock Commercial Real Estate represents office, industrial, retail, and medical tenants across Grand Rapids and West Michigan. Contact us to talk through your space needs.