TENANT REP
Tenant Representation
Tenant representation is a specialized brokerage service in which a broker exclusively advocates for a business or investor seeking to lease or purchase commercial space. Unlike listing brokers who represent landlords, a tenant representation broker’s sole obligation is to the client and their best interests.
How It Works
- Needs Assessment: Understand your business requirements, growth projections, budget, and location preferences.
- Market Survey & Site Identification: Conduct comprehensive market research and identify available spaces matching your criteria.
- Financial Analysis: Evaluate total occupancy cost, comparing rental rates, operating expenses, tax implications, and alternative options.
- LOI & Lease Negotiation: Negotiate Letter of Intent terms and lease provisions that maximize tenant benefits and minimize long-term costs.
- Occupancy Coordination: Manage tenant improvement coordination, final lease execution, and move-in logistics.
Key Considerations
- Total occupancy cost vs. asking rent (including all operating expenses)
- Hidden lease costs (CAM charges, operating expense escalations, renewal provisions)
- Landlord concessions (tenant improvement allowances, free rent periods)
- Sublease rights and assignment provisions
- Renewal options and renegotiation rights
The ARCA Approach
ARCA’s tenant representation combines deep capital markets expertise with understanding of landlord motivation and investment psychology. Our investment sales background enables superior lease negotiation, securing better terms and landlord concessions than brokers representing only tenants.
Frequently Asked Questions
Do I need a broker to lease commercial space?
While not legally required, a tenant representation broker provides significant advantages: market intelligence, access to unlisted properties, professional lease negotiation, and cost analysis. Brokers are typically paid by landlords (through shared commissions), not by tenants, making representation cost-effective.
Who pays the tenant representation broker?
Tenant representation brokers are paid through commission splits negotiated between listing brokers and tenant brokers. The landlord or lease commission structure typically covers all brokerage fees, so tenant representation at no direct cost to the occupant.
What is the difference between a listing broker and a tenant representation broker?
A listing broker represents the landlord and their goal is to maximize rent and favorable terms. A tenant representation broker represents the occupant and seeks to minimize total occupancy cost and secure favorable lease conditions. These are opposing positions; companies cannot ethically represent both sides simultaneously.
Schedule a consultation to discuss your commercial real estate needs.
