Tenant representation in commercial real estate has become one of the most critical strategies for businesses in 2025. With nearly 30% of U.S. office buildings considered functionally obsolete, tenants face more risk than ever when entering lease negotiations.
The Misunderstood Role of Tenant Reps
The narrative around the office market has been dominated by doom. Headlines warn of empty towers, collapsing demand, and “the death of office.” For tenants navigating this uncertainty, the risks are real:
- Signing long-term leases in obsolete buildings
- Overpaying for space in a market that should favor tenants
- Missing incentives and concessions that landlords are quietly offering
What many don’t realize is that tenant representation in commercial real estate exists to solve exactly these challenges. A tenant rep is a professional who exclusively advocates for the tenant—yet their fee is typically paid by the landlord.
That makes tenant representation in commercial real estate one of the most misunderstood but powerful tools available to businesses. It levels the playing field, ensures fair deals, and helps companies avoid expensive mistakes in a shifting office market.
How Tenant Reps Create Value
A tenant rep levels the playing field. Instead of going up against landlords alone, tenants gain an advocate whose only job is to secure the best deal.
As Joey Kline, EVP at JLL, explains:
- Tenant reps are paid by landlords, but work exclusively for tenants.
- They uncover hidden opportunities and identify which office buildings are viable versus functionally obsolete.
- They negotiate for favorable terms—sometimes securing unexpected concessions like pet-friendly policies or space alignment with niche needs (yes, even Feng Shui entrances).
In today’s bifurcated market—where 25% of buildings are obsolete while top-tier spaces thrive—tenant reps hold the key to smarter leasing decisions. This is the leverage tenants gain with tenant representation in commercial real estate.
The Market Is Shifting—Here’s What It Means
JLL’s research shows that 25–30% of U.S. office space is functionally obsolete. Those buildings are unlikely to recover, leaving tenants in the driver’s seat.
- Top 10% of office buildings (amenity-rich, well-located) remain competitive.
- Mid-tier buildings fight for tenants with higher concessions.
- Bottom-tier space sits vacant, with no financing or viable path forward.
For tenants, this creates leverage like never before. As Kline notes:
“For a tenant rep like myself that controls the key to leasing—which is the tenant—I’ve never had more control in my career.”
Industries currently leading office leasing:
- Legal services
- Professional services
- Finance and accounting
- Architecture and engineering
Meanwhile, tech and coworking—once market drivers—are no longer leading the charge.
What Tenants Should Do Now with Tenant Representation in Commercial Real Estate
If you’re exploring office space today, going it alone is risky. Instead, use the advantages of tenant representation in commercial real estate to navigate the market effectively:
- Engage a tenant rep early. Don’t wait until you’ve identified a building—bring a professional into the process from the start.
- Leverage market bifurcation. Use tenant-favorable conditions in the mid-tier to negotiate aggressively with landlords.
- Think beyond office. Consider alternative asset classes—retail conversions, mixed-use, or adaptive reuse—if traditional office space doesn’t fit.
- Vet your rep carefully. Look for experience in your industry, a strong network, and a proven track record in your metro.
Tenant representation in commercial real estate isn’t a luxury—it’s a necessity. In 2025, it’s the difference between overpaying for the wrong space and securing the right office on the right terms.
Q1: What is tenant representation in commercial real estate?
A1: It’s when a broker exclusively represents the tenant’s interests in lease negotiations, ensuring the best deal possible.
Q2: Who pays for tenant rep services?
A2: The landlord typically pays the tenant rep’s commission, not the tenant.
Q3: Why is tenant representation important now?
A3: With 25–30% of U.S. office buildings obsolete, tenant reps help businesses avoid costly mistakes and secure better terms.
Q4: What industries are driving office leasing today?
A4: Legal, professional services, finance, and engineering are most active, while tech has slowed.
Q5: Can tenant reps help with non-office properties?
A5: Yes—experienced reps also assist with flex, warehouse, and adaptive reuse projects.
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