AQUILA Ebook - Ultimate Guide To Hiring A Tenant Rep Broker

THE ULTIMATE GUIDE TO
Hiring a Tenant
Representation Broker
Everything You Need to Know Before

You Hire a Tenant Rep Broker
Authored by: Max McDonald, AQUILA Tenant Representation

So, you are looking to find or relocate
your office or warehouse space, but you
don’t know whether or not you’re ready
to commit to hiring a professional real
estate broker to represent you.
This guide will educate you on everything you need to know before
making the decision and hiring the best broker for your company —
from understanding what a tenant representation broker does and how
much they cost, to the benefits of using one and what questions to ask a
prospective broker before hiring their firm.
Table of Contents
CHAPTER 1 »
Who Should Hire a Tenant Representation Broker?
CHAPTER 2 »
What Exactly Is a Tenant Representation Broker and What Do They Do?
CHAPTER 3 »
Why You Should Hire a Tenant Rep Broker Versus Doing It Yourself
CHAPTER 4 »
What If You’re Not Looking for New Space? Why You Should Use a Broker
for a Renewal
CHAPTER 5 »
When Should You Begin Looking for a Tenant Rep Broker?
CHAPTER 6 »
How Much Does It Cost to Hire a Tenant Rep Broker?
CHAPTER 7 »
How to Hire the Right Tenant Representation Broker
ABOUT THE AUTHOR
Max McDonald »
Max is a dynamo; a workhorse for AQUILA’s tenant
representation team. He runs the surveys, makes the calls
and crunches the numbers in order to present his clients
with the best available options in the market.
CHAPTER 1
Who Should Hire a

Tenant Representation Broker?
The Ultimate Guide to Hiring a Tenant Representation Broker | Page 4

Before we get started, it’s important to understand whether or not hiring a tenant
representation broker is right for you and your company.
You might be interested in hiring a broker if you are a business or retailer:
• That is looking for new office, retail or industrial space

• With an upcoming lease expiration
• Whose current office no longer meets your needs (maybe is too big or too small)
• That is feeling overwhelmed by the process of finding office space or
(re)negotiating your lease
Nearly every business can benefit from using the services of a tenant
representation broker.
Companies that use tenant rep brokers can be:
• Small or large
• Local, regional, national or international
• Retailers, restaurants, warehouses, manufacturers, distributors or office users
• Private, public, government or non-profit organizations
• From any industry – from technology to professional services, healthcare to logistics
Bottom line: if you are a business who needs to rent, lease or buy
commercial real estate, a tenant representation broker can help.

CHAPTER 2
What Exactly Is a Tenant Rep

Broker and What Do They Do?

Tenant representation brokers represent businesses in commercial real estate
transactions.
They are also sometimes called “tenant advisory” or “corporate services”

representatives, but you will most often hear them referred to as “tenant reps.”
A tenant rep is there to assist companies and organizations throughout the

entire leasing process, from the initial needs assessment and site selection to
occupancy, lease expiration and beyond.
The job of a tenant representative is to take the stress of the

real estate process off your plate.”
- KRISTI SVEC SIMMONS

What Is a Tenant Rep Broker and What Do They Do?1 »
Think of a tenant rep as your own personal assistant whose goal is to help
your company find the best office space possible with the least impact on
your bottom line.
Finding the right real estate solution truly is a full-time job, and a tenant rep
will run the process for you, presenting you with the best options to fit your
company, while you focus on what matters most to you – your business.

What Does a Tenant Representation Broker Do?
A tenant representation broker helps facilitate the leasing transaction
between a tenant and a landlord.
Rather than going through the process alone, a company can hire a broker
to represent them throughout the entire leasing process.
Here are a few key things a tenant representation broker can help you with:
Deciding whether to relocate versus renew your current lease
Finding the right space for your needs
Negotiating your lease
Answering questions during your lease
Helping sublease all or part of your space
Selling or purchasing space
It’s important to also know what a tenant rep does not do. A tenant
representation broker does not:
Make decisions on behalf of your company
Replace your lawyer when it comes to reviewing your lease
Work for building owners

There are several other things2 besides finding and leasing space a tenant
rep broker can help you with. Some of these include:
Managing Subleasing Responding

Expansion Unused to a Change
& Growth3 » Space4 » in Ownership5 »
Referring Deciding Preparing for

Reputable to Lease or Arbitration with
Vendors6 » Purchase7 » Your Landlord8 »
Creating Renewal Finding More

Leverage Early9 » Employee Parking10 »

CHAPTER 3
Why You Should Hire

a Tenant Rep Broker
Versus Doing It Yourself?

When you use a tenant representation broker you are basically outsourcing
your real estate. But you still might be thinking “I could just do this myself.”
There are numerous other benefits of hiring a tenant representation broker11

besides just having someone take it off your plate. The three most common
reasons our clients say they hired a tenant rep broker are:
1. They Will Help You Understand Your Needs

(Now and in the Future)
Often, companies are looking for new space when their current space no
longer fits their needs.
It is important to begin the site selection process with a needs assessment.

Does your vision match up with what you need? A tenant rep broker will ask
you the necessary questions and run the preliminary analysis to help you
determine exactly what you need in your new office space, factoring in, of
course, your desired budget.
It’s not only about finding space that works for your
company now, but planning for a space that will
serve your company for years to come.
A tenant rep broker can help you plan for the future — they will take into
account how much space you need now and how to manage your projected
growth.

2. They Will Give you Access to More Options
If you are trying to find space on your own, it can be difficult to get the full
picture of what’s available. A tenant rep broker will be able to identify more
options than you could on your own – and with much less time and effort.
A tenant rep broker has numerous resources to find the most inclusive list of
real estate options on the market, such as:
• Complete Listings: Commercial real estate brokers have access to the most
complete listing databases like CoStar12, essentially the MLS of commercial real
estate.
• Industry Relationships: Tenant reps have professional relationships with both

leasing brokers and landlords, which allows them to easily get updated information
on what’s available now.
• Off-Market Options: Through their industry connections, tenant rep brokers

may also have information on spaces that are not on the market yet, as well as
companies that are attempting to sublease some or all of their space.
They will also take the time to cull through the list and present to you the
options that best suit your needs.

3. They Will Help Negotiate Your Deal Terms
Going into the lease negotiation process alone can be overwhelming and
incredibly challenging. This is where hiring a tenant rep broker can save you
a lot of headache and money.
A tenant rep adds value to the negotiation process by knowing what

economic and non-economic factors are common in the market, as well as
walking you through the negotiation process and explaining things to you
along the way.
By hiring a tenant rep, you can help your company get the best lease
terms possible without the stress of worrying about whether you are doing
everything correctly.
At the end of the day, real estate is a complicated industry.

There are so many industry-specific terms, legal details and market
intricacies that it is almost impossible for someone not actively involved
with real estate to know everything.

CHAPTER 4
What If You’re Not Looking

for New Space? Why You Should
Use a Broker for a Renewal

Would you write your will without the help of a lawyer? Invest millions of
dollars without the help of a financial advisor? That is essentially what you’re
doing when you choose to not use a tenant representation broker on your
real estate transaction.
But what if I already have a renewal options

in my lease?
Even if you have a renewal option in your existing lease, it is wise to go
through the entire process to secure the most favorable economics.
A lease renewal very rarely gets executed exactly per the language in a
tenant’s existing lease. Including a renewal option in a lease is always good
to have in place as a safety net, but, in practice, almost all renewals are
negotiated similar to the way a new deal would be.
Oftentimes, landlords will not give concessions if they are

certain the tenant will stay. So, in order to get the best
transaction, we have found that tenants should treat the
renewal process the same way as if they were planning to
move. This means actually going through the site selection
process, even if you don’t think you intend to relocate.”
- KRISTI SVEC SIMMONS

3 Reasons to Use a Tenant Representation Broker for Your Lease Renewal13 »

Whether you are looking for new office space, or planning to renew at your
current space, you should follow the same process on the front end.
This means actually going through the site selection process, even if you
don’t think you intend to relocate.
Going through the site selection process and considering other viable
options can give you the best chance to gain concessions since you have
“one foot out the door.”
Your tenant representation broker will attempt to find an attractive alternative

so that you become indifferent to staying or leaving, thus creating leverage
for negotiations.
Your landlord may be more likely to allot you concessions in an effort to

keep you, if they think there is a likelihood you will vacate at the end of your
lease.

CHAPTER 5
When Should You Begin Looking

for a Tenant Rep Broker?

You should begin the process of looking for a tenant rep broker early enough
that you have enough time to properly vet multiple brokers and firms and
make a selection in time to go through a comprehensive site selection and
negotiation process.
The simple answer is: as soon as possible.
You should plan ahead so you have enough time to:
• Identify multiple options
• Create a competitive environment by leveraging landlords against one another
• Negotiate the various deal points14 and legalese within the lease document
• Have plenty of time to complete construction or build-out of the space and move in
• If you don’t allot enough time for each of these steps, you could lose leverage and
be forced to make decisions without fully vetting each option, ultimately resulting in
financial loss or business interruption.
Typical renewal/search timelines based on tenant square footage are:
Company Size Time Frame to Begin Process
> 25,000 SF 18 – 24 months prior to lease expiration
10,000 – 25,000 SF 12 months prior to lease expiration
<10,000 SF 6 – 12 months prior to lease expiration

CHAPTER 6
How Much Does It Cost to Hire

a Tenant Representation Broker?

Good news! Typically, you (as the tenant) do not have to pay the
tenant rep broker anything out of your own pocket.
(There are exceptions to this15, but they are rare.)
Tenant representation brokers are paid a fee, often called a commission, by

the landlord upon the completion of a transaction. This commission varies
based on the type of space you’re leasing and the type of lease you’re
working on (i.e. – new, renewal or expansion).
For a full explanation of how a tenant rep broker’s commission is calculated,

read our article How Much Does It Cost to Use a Tenant Representation
Broker? (Fees/Process/Benefits)16.

CHAPTER 7
How to Hire the Right

Tenant Representation Broker

Now that you understand why you need one and how much it will cost, how
do you go about hiring the best tenant rep broker for your company?
In order to make the broker selection process easier, we’ve outlined the key
questions you must ask a tenant rep broker during the interview process17.
1. Does the broker work for a reputable firm?

Making sure your tenant representation broker works for a reputable firm
is important. Reputation and resources are key components to hiring a
reputable broker.
Reputation
Client testimonials and references can be key to understanding if a firm just
presents well, or if they truly have the sophistication and ethical standards to
get you the best results possible.
Resources
Additionally, you should ensure your broker has the resources needed to
handle your project, including:
• Listing Sites
• Mapping Software
• Market Research Department
In most markets, you will run into both national powerhouses and local
experts. To help navigate which is best for you, we’ve put together this article
highlighting the pros and cons18 of each type of firm.

2. Has my broker made reputable and
trustworthy deals in the past?
It is equally, if not more important, to make sure that the specific broker
within the firm you are considering has pleased clients in the past and has a
sufficient amount of experience.
Your broker’s reputation within the industry can materially affect how
landlords and listing brokers treat your prospective tenancy. Tenants whose
broker’s had positive interactions with other industry professionals can reap
the benefits of accumulated goodwill, while tenant’s whose brokers had less
than pleasant experiences with other industry professionals may have to deal
with unwanted and undeserved consequences.
Ultimately, tenant rep brokers want to have a strong

reputation and do well for their clients so that they can
win more business. Being honest, trustworthy and a good
negotiator are all crucial to maintaining a positive reputation
in the industry.”
- MATT WILHITE
5 Reasons to Hire a Tenant Rep Broker From a Full Service Firm19 »
Your broker should be able to provide you with a number of testimonials and
references from previous satisfied clients, and those clients should be able to
confirm their satisfaction from working with the broker.

3. How much experience does my broker have?
This does not necessarily mean how long a broker has been in the real estate
industry. Instead, you should ask questions about how well they know the
local market and the kind of property you’re looking for.
4. Does my broker specialize in my industry?

When looking for a tenant rep broker, you want to make sure your broker not
only specializes in tenant representation, but understands your property type
and industry.
Because of the variety of commercial lease structures20 and elements of

commercial leases21, it is important to find a broker with experience dealing
with your specific needs. In addition, the office market, industrial market
and retail market all have their own industry trends and networks, which a
property-type specialist will understand.
Additionally, you’ll want to make sure your broker understands the specific
needs of your industry. From law firms to tech start-ups, call centers to
distribution centers, each type of business has it’s own unique requirements
for space. Be it high parking ratios and the ability for high-density office
space or the need for substantial tenant improvement requirements22 for
luxurious common spaces, a broker who has worked with similar companies
or firms will likely already be aware of these needs, and may even make
a few recommendations based on what they’ve learned from these past
transactions.

5. Does my brokerage firm offer additional
services and assistance throughout the process?
Finding the right space for your company is only the start of your commercial
real estate journey. Your broker should be able to assist you with finding the
right consultants and contractors for personalizing your workplace strategy,
IT infrastructure, furniture selection and often times can offer you important
business insight from past deals. Furthermore, in the future you can reach out
to this broker should you need to expand23, renew24 or relocate.
By working with an exclusive tenant representation

broker, that broker can then deploy additional company
resources and bring in a dedicated team to assist with your
transaction, including financial analysts and advisors, project
management, architectural teams that will help the tenant
come to realize their total future costs.”
- JON WHELESS
5 Reasons to Hire an Exclusive Tenant Representation Broker (Not Multiple)25 »
In addition to the services your broker can provide, your broker should be
able to provide you with recommendations for a project manager (a must-
have if your new space requires renovations of any sort). Most full-service
commercial real estate firms have project management teams that can (and
should) be brought in during the site selection process.
We explain the benefits to be had by engaging a full service firm in our

article 5 Reasons to Hire a Tenant Rep Broker From a Full Service Firm26.

RESOURCE
25 Questions to Ask Before Hiring

a Tenant Rep Broker
Finding the right property for your company can be a
stressful and challenging task. Hiring the right tenant
representation broker can relieve you of unnecessary stress.
To help make the selection process easier, we’ve compiled

a list of the questions you should ask a tenant rep broker
before making the decision to hire them. You can find this
two- page comprehensive list on the following pages.
Do you work for a government, education or

non-profit entity or organization?
If so, you may be required to undergo a formal bid process, known as a
Request for Proposals (“RFP”) or Request for Qualification (“RFQ”), in order
to select an approved vendor or vendors for your commercial real estate
needs.
Read our article How to Write a Request for Proposal (RFP) to Hire a Real
Estate Broker27 to learn more about this process.

25 QUESTIONS TO ASK
BEFORE YOU HIRE A

TENANT REP BROKER
Finding the right property for your company can be a stressful and challenging task. Hiring the right
tenant rep broker can relieve you of unnecessary stress. To help make the selection process easier,
we’ve compiled a list of the five main questions you should ask a tenant rep broker before making the
decision to hire them. These questions will ensure that you find a qualified, capable broker who is also
the right fit for you and your company.
1. Does the broker work for a reputable firm?

Making sure your tenant representation broker works for a reputable firm is important. Reputation and
resources are key components to hiring a reputable broker.
Specific questions to ask:
2. Do you have any testimonials you can share from clients you’ve worked with recently?
3. Can your firm offer mapping services?
4. Does your firm maintain a lease comparable database?
5. Do you have access to listing services such as CoStar?
6. Has the broker made reputable and trustworthy deals in the past?
It is important to make sure that the specific broker within the firm you are considering has pleased
clients in the past and has a sufficient amount of experience.
7. Who are some of your other clients? How long have you worked with them?
8. Can you provide names and contact information for references that I can talk to, with
whom the brokers on my team have recently worked with on a similar project?
9. Do you have any testimonials you can provide from clients you have worked with directly?
10. Are there any relevant case studies from projects you were involved in that I can look at?
11. How much experience does the broker have?
This does not necessarily mean how long a broker has been in the real estate industry. Instead, you should
ask questions about how well they know the local market and the kind of property you’re looking for.
12. What types of tenants do you typically represent?
13. What has been leased in my desired area in the last month, last six months, and last year?
14. Can you provide me a sampling of similar projects you’ve worked on in the past five years?
15. Does the broker specialize in my industry?

When looking for a tenant rep broker, you want to make sure your broker not only specializes in tenant
representation, but understands your property type and industry.
16. Can you give me an overview of the current market for my property type?
17. What new developments are underway in the [office, retail, industrial, etc.] market?
18. What other companies in my industry have you worked with?
19. What have you found to be the biggest priorities for other companies in my industry?
20. What trends are you seeing with other companies in my industry?
21. Does the brokerage firm offer additional services and assistance
throughout the process?
Finding the right space for your company is only the start of your commercial real estate journey.
Your broker should be able to assist you with other services if needed.
22. What services do you provide in addition to site selection?
23. What will our relationship be like after my lease is signed?
24. Does your firm offer project management services for the build-out of my space?
25. Will you be able to help us if our company decides to sublease space in the future?
WHAT’S NEXT?
Now that you know the right questions to ask before hiring a broker, finding the right tenant
rep broker to lead your office search should be a little bit easier. To learn more about AQUILA’s
expert tenant representation team, visit our tenant representation page on our website or
schedule a consultation with our team.
Ready to Talk to an
AQUILA Tenant Rep Broker
About Your Commercial
Real Estate Needs in
Austin, Texas?
If you have questions for Jon (or even if you just want to say hi)
you can email him directly at wheless@aquilacommercial.com..
And if you’re interested in learning more about our

tenant representation services, we’re here to help.
For more resources, be sure to check out the AQUILA Learning

Center. We are regularly adding new content!
Endnotes
1
Source: https://aquilacommercial.com/learning-center/what-is-tenant-representation-broker-what-they-do/
2
Source: https://aquilacommercial.com/learning-center/problems-tenant-rep-broker-can-help-solve-besides-finding-leasing-office-space/
3
Source: https://aquilacommercial.com/learning-center/problems-tenant-rep-broker-can-help-solve-besides-finding-leasing-office-
space/#expansion
4
space/#subleasing
5
space/#ownership
6
space/#vendors
7
space/#lease
8
space/#arbitration
9
space/#leverage
10
space/#parking
11
Source: https://aquilacommercial.com/learning-center/7-benefits-hiring-tenant-representation-broker/
12
Source: http://www.costar.com/
13
Source: https://aquilacommercial.com/learning-center/reasons-use-tenant-representation-broker-lease/
14
Source: https://aquilacommercial.com/learning-center/your-guide-to-the-elements-of-a-commercial-lease-terms-definitions/
15
Source: https://aquilacommercial.com/learning-center/cost-to-use-tenant-broker-austin/
16
Source: https://aquilacommercial.com/learning-center/cost-to-use-tenant-broker-austin/
17
Source: https://aquilacommercial.com/learning-center/5-key-questions-ask-hiring-tenant-representation-broker/
18
Source: https://aquilacommercial.com/blog/local-vs-national-commercial-real-estate-firm-better-pros-cons/
19
Source: https://aquilacommercial.com/learning-center/5-reasons-hire-tenant-rep-broker-full-service-firm-conflict-interest-myth-debunked/
20
Source: https://aquilacommercial.com/blog/typical-types-commercial-leases-austin-texas-nnn-lease-vs-gross-lease/
21
Source: https://aquilacommercial.com/blog/your-guide-to-the-elements-of-a-commercial-lease-terms-definitions/
22
Source: https://aquilacommercial.com/learning-center/what-is-tenant-improvement-allowance-what-does-it-cover/
23
Source: https://aquilacommercial.com/learning-center/types-expansion-clauses-commercial-leases-understanding-pros-cons/
24
Source: https://aquilacommercial.com/learning-center/reasons-use-tenant-representation-broker-lease/
25
Source: https://aquilacommercial.com/learning-center/reasons-hire-exclusive-tenant-representation-broker-not-multiple/
26
Source: https://aquilacommercial.com/learning-center/5-reasons-hire-tenant-rep-broker-full-service-firm-conflict-interest-myth-debunked/
27
Source: https://aquilacommercial.com/learning-center/how-to-write-rfp-hire-real-estate-broker/

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THE ULTIMATE GUIDE TO

Everything You Need to Know Before

Authored by: Max McDonald, AQUILA Tenant Representation

ABOUT THE AUTHOR

Who Should Hire a

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 4

You might be interested in hiring a broker if you are a business or retailer:

• That is looking for new office, retail or industrial space

Companies that use tenant rep brokers can be:

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 5

What Exactly Is a Tenant Rep

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 6

They are also sometimes called “tenant advisory” or “corporate services”

A tenant rep is there to assist companies and organizations throughout the

The job of a tenant representative is to take the stress of the

- KRISTI SVEC SIMMONS

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 7

Deciding whether to relocate versus renew your current lease

Finding the right space for your needs

Negotiating your lease

Answering questions during your lease

Helping sublease all or part of your space

Selling or purchasing space

Make decisions on behalf of your company

Replace your lawyer when it comes to reviewing your lease

Work for building owners

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 8

Managing Subleasing Responding

Referring Deciding Preparing for

Creating Renewal Finding More

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 9

Why You Should Hire

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 10

There are numerous other benefits of hiring a tenant representation broker11

1. They Will Help You Understand Your Needs

It is important to begin the site selection process with a needs assessment.

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 11

• Industry Relationships: Tenant reps have professional relationships with both

• Off-Market Options: Through their industry connections, tenant rep brokers

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 12

A tenant rep adds value to the negotiation process by knowing what

At the end of the day, real estate is a complicated industry.

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 13

What If You’re Not Looking

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 14

But what if I already have a renewal options

Oftentimes, landlords will not give concessions if they are

- KRISTI SVEC SIMMONS

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 15

Your tenant representation broker will attempt to find an attractive alternative

Your landlord may be more likely to allot you concessions in an effort to

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 16

When Should You Begin Looking

The Ultimate Guide to Hiring a Tenant Representation Broker | Page 17

The simple answer is: as soon as possible.

You should plan ahead so you have enough time to:

• Identify multiple options

• Create a competitive environment by leveraging landlords against one another

Typical renewal/search timelines based on tenant square footage are:

Company Size Time Frame to Begin Process

> 25,000 SF 18 – 24 months prior to lease expiration

10,000 – 25,000 SF 12 months prior to lease expiration

<10,000 SF 6 – 12 months prior to lease expiration