What Is a Tenant Broker?

A tenant broker is a person who helps prospective tenants or buyers locate suitable commercial property. Tenant brokers can provide you with sound analysis of real estate market conditions, inform you about space availability, and even negotiate lease terms with a landlord.

Before you commit to renting a property, make sure that you have a tenant broker representing your interests. Landlords also hire brokers — called "leasing agents" — to fill vacant space in their buildings, but these agents work for the landlord, not for you. They earn a commission from the landlord or building owner each time they get a tenant to sign a lease and occupy space.

Although a building owner also pays a tenant broker's fee, tenant brokers don't work as exclusive leasing agents for one property or one landlord. When you hire a tenant broker, he or she works for you. Beware of landlords or leasing agents who refuse to work with your broker: This is a pretty sure sign you're dealing with disreputable people.

A tenant broker should give you objective advice, since their commission isn't directly tied to a particular property. In addition, working with a broker lets a landlord know you're seriously looking at multiple leasing opportunities. This may make a landlord more competitive and willing to negotiate favorable lease terms.

The best way to find a good tenant broker is to ask the right people. Get referrals from your peers or business associates, or just ask brokers about their experience. Look for a broker who has a history of helping clients find properties and experience negotiating lease terms, along with a proven track record of protecting tenants.