Category Archives: Uncategorized

Advantages of Using a Tenant Representation Broker when Leasing Commercial Property

Modern Sky Scrapers


There may come a time where you as an entrepreneur need to lease commercial space for your business.  The typical approach is to ride around your desired area and call on signs posted on buildings.  If you succeed in getting a reply or showing, you will deal with the landlord’s agent who is representing the building owner and their interests.  Many listing brokers will be friendly and helpful, but in the end are legally bound to get their clients the best financial terms as possible. You may have experience leasing spaces in the past and are skilled enough to negotiate some concessions from the landlord.  Even then you will only be going through the process of negotiating a lease once every few years and are most likely not keeping daily tabs on your local commercial real estate market.  If the Landlord has a commercial real estate specialist representing their interests, it only makes sense that you have the same.  This article will explain all the advantages of working with a commercial tenant representation broker and why there are really no disadvantages.

  1. It’s Free

Tenant and buyer representation brokers typically do not charge their clients fees.  There are some that do, but we don’t at Office Space San Diego.  Broker commissions are almost always paid by the landlord in a commercial leasing deal.  There are some exceptions, but if you see a sign on a building from a brokerage, there is already a commission agreement in place between them and the building owner.  It will usually be 6 to 8% of the total lease value depending on the type of property.  Landlord brokers welcome tenant brokers that bring them prospective tenants, so they split their commission with them after a successful lease transaction.  It is the exact same process as buying a house.  If a buyer comes without a buyer’s agent, the listing agent will just pocket the entire commission.  Therefore using a Tenant Representation Broker is risk free as it won’t cost you anything out of your pocket.

  1. You Get Access to All Available Property

Licensed brokers have access to an online commercial multi-listing service called Costar.  Costar is the Commercial Real Estate Industry standard and is only available on a subscription basis to licensed real estate brokers.  Another site called Loopnet is owned by Costar and is available to the public.  However they do not police their listings on Loopnet, so there is a lot of outdated information.  A lot of which is purposely left up so brokers can pull new clients from web searches.  Costar is monitored on a regular basis and has the most up-to-date information

  1. You’ll Save Time

Driving around commercial districts and writing down numbers from buildings can be fun and is the most obvious way to start a property search.  However it can difficult to know the size of the property, and unless you get in touch with the listing broker, impossible to know the price.  Listing brokers get calls all day long from prospective tenants and have learned to be selective on who they call back, as they deal with a lot of time-wasters.  If you don’t have a recognizable company name, some won’t even return your call.  A Tenant representation broker can get you a detailed report of all available properties in a geographic area, complete with size, price, layout and many other detailsListing brokers will also take a call from a fellow broker much more readily, as they know there has been an initial vetting process done.

  1. You’ll Save Money

Good tenant representation brokers conduct regular business in their local markets.  They have knowledge of what other buildings are charging for rent, what concessions local landlords are willing to make (such as free rent and tenant improvements), knowledge of local commercial and industrial zoning regulations and knowledge of many other factors.  Commercial leases can be complicated animals and can deal with very large sums of money.  It is easy to overlook small details in a commercial lease that can heavily favor your landlord in the long run.  Having a broker guiding you through the process can save you money both in the short and long term.

If you are currently looking to lease or buy commercial real estate in the San Diego area, give me call at 619-241-3315 or email me at with any questions.