If your business is looking for office space in New York City, you can hire a broker who works only for you. That broker is called a tenant representative, or tenant rep broker. In almost every case, their service costs you nothing, because the landlord pays the commission. Here is how it works, what a tenant rep actually does, and when it makes sense to use one.
What is a tenant rep broker?
A tenant rep represents the company leasing the space, not the building. Most office buildings already have a leasing broker, and that broker works for the landlord. Their job is to get the best deal for the owner, which usually means the highest rent. A tenant rep puts an expert on your side of the table whose only goal is a good outcome for you.
What does a tenant rep actually do?
The real work starts well before you tour anything. A tenant rep begins by understanding what you are looking for, including your budget, location, size, and must-haves, then prepares a survey of the available spaces with the key information laid out so you can compare them easily. From there, the job includes searching the whole market, touring options with you and filtering out anything that does not fit, knowing current asking rents so you are not overpaying, helping you negotiate the lease terms, free rent, and buildout, flagging clauses that could cost you later, and guiding you from the first tour through a signed lease.
A tenant rep also brings access to the full market. Brokers use industry databases that show nearly every available space in the city, while a company searching on its own usually sees only the small, publicly advertised slice of what is actually out there. Going it alone often means missing options you never knew existed.
Is it really free?
Yes, in almost all cases. When a lease is signed, the landlord pays a commission, and your tenant rep is paid out of it. That cost is typically already built into the deal whether or not you bring your own representation. So if you skip hiring a tenant rep, you are not saving money. You are simply leaving your side of the negotiation to a broker who works for the landlord.
There are a couple of exceptions. If you are putting your own space up for sublease, you may be responsible for a commission. And a smaller or less established landlord occasionally does not pay a broker fee, in which case I always tell you before we tour the space, so there are never surprises. The simple rule: confirm the fee arrangement in writing before you start, and a good tenant rep will make that clear up front.
How the commission works
In a standard commercial lease, the landlord pays the brokerage commission, usually calculated as a percentage of the total value of the lease over its term. That commission is then shared between the landlord's broker and your tenant rep. Because it is baked into the economics of the deal, having your own representation does not add a separate cost on top. It simply decides whether half of that built-in commission goes to a second broker working for the landlord, or to a broker working for you. Given that, there is rarely a reason to leave your side unrepresented.
Why a tenant-only broker matters
Most of the big brokerage firms work both sides of the market. They have teams representing landlords and teams representing tenants, and sometimes the same firm sits on both sides of a deal. That creates a conflict: if your broker's own firm represents the building you are touring, how hard are they really pushing against it on your behalf?
Davada Advisors only does tenant representation. I never work for landlords, so there is never a question about whose interests come first. When I am negotiating your lease, my only job is getting you the best space on the best terms.
What a tenant rep protects you from
A commercial lease is a long, detailed document, and the rent number is only part of it. Beyond the base rent, a lease includes things like annual escalations, your share of operating expenses and taxes, the buildout or tenant improvement allowance, renewal and expansion options, personal or good guy guarantees, and restoration obligations when you leave. Any one of these can cost you real money if it is not handled well.
Part of my job is to flag those terms, explain what they mean in plain language, and negotiate the ones that matter. For a deeper look at the full process and the specific terms to watch, see my guides on how to lease office space in NYC and the glossary of office leasing terms.
Do small companies need one?
Just as much as large ones. Small and midsize companies need a tenant rep every bit as much as big corporations do, but they are often the ones overlooked by larger brokerage firms chasing bigger deals. A lease is usually a multi-year commitment, often three, five, or even ten years, and one of the largest fixed costs a company takes on. That is exactly where an advocate pays off, and since it costs you nothing, there is little reason to go it alone.
If you do go it alone, it is worth knowing what you give up: you see fewer available spaces, you rely on a broker whose duty is to the landlord, you have less leverage in the negotiation, and you spend far more of your own time managing the search. None of that saves you money, since the commission is built into the deal either way.
More resources: Office leasing glossary · Office leasing FAQ · Office space calculator
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