Two sides of the same firm
Most large brokerages run a landlord leasing business alongside their tenant practice. In the DC metro, the largest firms each represent tens of millions of square feet of landlord office space, according to Clarity's market research: JLL 59.8M SF, CBRE 51.5M, Cushman & Wakefield 47.0M.
Why it matters in a negotiation
A broker paid by landlords across a portfolio has a standing incentive to protect those relationships, even while representing a tenant in an unrelated deal. It can shape which buildings are shown, how hard a landlord is pushed, and how a deal is framed for a board. Read the pledges these firms make to both sides in their own words.
What conflict-free looks like
- The firm represents tenants only, in every market.
- It does not represent building owners, developers, or institutional investors, or provide building management.
- Its fee is the same whichever building the tenant chooses.
Questions to ask any broker
- Do you, or does your firm, represent the landlord of any building on my shortlist?
- What share of your firm's revenue comes from landlord work?
- Who will negotiate my deal: the partner in this meeting, or someone else?
- How are you paid, and does it change with the building I choose?
Frequently asked questions
What does a tenant representation broker do?
A tenant rep advises an office tenant through the search, analysis, negotiation, and post-lease management of its space, and represents only the tenant's interests.
Who pays the tenant rep?
Typically the landlord, through a market-standard commission from the transaction budget, so there is no out-of-pocket cost to the tenant.
Sean Balile
President & Founder, Clarity Tenant Representation. Sean has led clients through more than a thousand lease transactions.