Tenant representation (often called "tenant rep") is a commercial real estate brokerage arrangement in which a broker represents the tenant — not the landlord — in a lease negotiation. The tenant rep broker's job is to act in the tenant's best interest throughout the space search, negotiation, and lease signing process.
How tenant representation works
When a business is looking for commercial space, they typically have two options. They can engage a tenant rep broker who works on their behalf, or they can deal directly with landlords and their listing brokers — who represent the landlord's interests, not theirs.
The tenant rep broker:
- Defines the tenant's requirements (space size, location, budget, specific needs)
- Conducts a market search and identifies available options
- Arranges tours of relevant spaces
- Negotiates the letter of intent (LOI) on behalf of the tenant
- Works with the tenant's attorney to review and negotiate the lease
- Advises on market conditions, comparable deals, and landlord flexibility
The tenant rep's job is specifically to get the tenant a better deal — lower rent, more favorable lease terms, landlord concessions like free rent or a tenant improvement allowance — than the tenant would get negotiating directly with a landlord who's represented by their own broker.
Who pays for tenant representation
In most commercial lease transactions, the landlord pays the commission — split between the landlord's broker and the tenant's broker. The tenant typically pays nothing directly for tenant representation.
This structure means there's generally no financial reason for a tenant to skip representation. The commission comes out of the deal regardless; the only question is whether the tenant has an advocate at the table who is working for their interests.
What tenant rep looks like in NYC retail leasing
In NYC retail, the tenant rep role has some specific characteristics worth understanding.
Space identification is more complex. NYC retail availability isn't fully centralized on listing platforms — a significant portion of desirable availability is off-market, shared through broker relationships rather than posted publicly. A tenant rep with strong corridor relationships can access spaces that don't appear on CoStar. A tenant going it alone is limited to what's publicly listed.
Negotiating leverage varies by corridor. The same tenant covenant (credit quality, business track record, category type) has different leverage on a side street in Cobble Hill than on Broadway in SoHo. An experienced tenant rep in the target market knows how motivated specific landlords are, what comparable deals look like, and where there's room to push.
Personal guarantees and lease structure. NYC retail leases regularly include personal guarantees, percentage rent clauses, and other provisions that require informed negotiation. The tenant rep's job includes flagging provisions that are unfavorable and negotiating alternatives where the market will support them.
Tenant rep versus dual representation
Some brokers represent both the landlord and the tenant in the same transaction — this is called dual agency. In commercial real estate it's legal in most states with disclosure, but it creates an obvious conflict. A broker who represents both sides can't fully advocate for either one.
Tenants in significant lease transactions — any NYC retail lease of meaningful size and duration — benefit from having a broker whose only job is getting them the best deal. That's the core value of tenant representation.
Station CRM's pipeline tools support both tenant rep and landlord rep workflows, with a CRE-native data model that tracks client requirements, available spaces, and deal progress separately. See the features or request a demo.
Related reading: What is a retail leasing broker · Best CRM for tenant rep brokers · NYC retail leasing guide