What is Tenant Representation and Why Do You Need It?
What Does a Tenant Representative Do?
A tenant representative (or tenant advocate) is a commercial real estate professional who exclusively represents the interests of tenants — not landlords. Unlike a listing agent who is paid by the landlord to fill vacancies, a tenant rep works for you to find the right space at the best terms.
Their role includes market research, shortlisting suitable properties, negotiating lease terms, and providing strategic advice throughout the entire leasing process.
Why You Need One
The commercial leasing market is complex. Landlords and their agents negotiate leases every day — most tenants do it once every 3–10 years. This information asymmetry means tenants often leave money on the table.
A tenant representative levels the playing field by bringing market knowledge, negotiation expertise, and a fiduciary duty to act in your best interest.
Key Benefits
- Market intelligence: Access to real-time data on vacancy rates, comparable rents, and incentive levels across your target markets.
- Time savings: They do the legwork of identifying and inspecting properties so you can focus on running your business.
- Better terms: Experienced negotiators typically secure 10–30% better outcomes than tenants negotiating directly.
- Conflict-free advice: Unlike a landlord's agent, they have no incentive to push you toward a particular building.
How Does It Work?
The process typically follows these steps:
- Needs analysis: Understanding your business, culture, headcount, growth plans, and budget.
- Market search: Identifying all suitable options in your preferred locations.
- Shortlisting: Evaluating and touring the best options with you.
- Negotiation: Running a competitive process to secure the best deal.
- Lease review: Working with your solicitor to ensure the lease protects your interests.
What Does It Cost?
In most Australian markets, tenant representation fees are paid by the landlord as part of the leasing commission — meaning the service is effectively free to you. The landlord pays a commission regardless of whether you use a tenant rep, so by not using one, you're leaving expert advice on the table.