Short answer: a tenant rep broker works for you, the business leasing the space, not the landlord. They find spaces that fit, tour with you, compare the real costs, and negotiate the lease terms. In many industrial leases, the tenant's broker is paid out of the commission the landlord pays under its listing agreement. That varies from deal to deal, so get the arrangement in writing before you start.
I'm Carolyn Olivieri, a Doylestown-based industrial and flex specialist with KW Commercial. I have over ten years in distribution and still run a distribution business today. I focus on tenant rep because I know what it's like to be the one signing the lease and paying the rent.
The landlord's broker works for the landlord
When you call the number on a "For Lease" sign, you're usually talking to the listing broker. Their job is to get the landlord a good deal. That's fair, but it means nobody on that call is focused on your side.
What a tenant rep broker does
- Helps you figure out the size, doors, clear height, power and location you need.
- Searches the spaces on the market that fit your needs.
- Tours with you and points out problems early, like a tight truck court or zoning issues.
- Compares total costs, including NNN charges, CAM, rent increases and TI.
- Negotiates rent, free rent, TI allowance, lease length, renewal and expansion options.
- Coordinates with your attorney, who should review the lease.
How tenant rep brokers are usually paid
In many commercial leases, the landlord agrees in its listing agreement to pay a commission, and part of it goes to the broker who brings the tenant. In those cases, the tenant often doesn't write a separate check to their broker. But it isn't always set up that way. Some deals are structured differently. Ask your broker to explain how they'll be paid on your deal, and get it in writing.
When it makes sense to have one
- You're leasing for the first time.
- You're outgrowing your space and need to time a move.
- Your lease is coming up for renewal and you want to know your options.
- You're comparing spaces in different townships.
Before you hire one, ask
- Do you work with industrial and flex tenants in Bucks County?
- How will you be paid on my deal?
- Will you show me all the spaces that fit, not just certain ones?
- How do you compare total occupancy costs?
Helpful reading: How Much Warehouse Space Do I Need?, What Does It Cost to Lease Industrial Space in Bucks County? and How Does Zoning Work for Warehouse Use in Bucks County?
FAQs
Does it cost me anything to use a tenant rep broker?
Often the broker is paid from the commission the landlord pays under its listing agreement, but it varies by deal. Ask how they'll be paid and get it in writing.
Can I just call the listing broker myself?
You can. Just keep in mind the listing broker represents the landlord.
When should I call a tenant rep broker?
Early. If your lease is ending, aim to start looking well ahead of time so you have options and room to negotiate.
Can a tenant rep broker help with a lease renewal?
Yes. Knowing what other spaces cost can help you negotiate a renewal with your current landlord.
Talk to a local industrial specialist
Questions about industrial or flex space in Bucks County? Email Carolyn Olivieri, a Doylestown-based industrial and flex specialist with KW Commercial, at c.olivieri@kwcommercial.com
Carolyn Olivieri, KW Commercial