Why it matters
Office markets vary by building and submarket. A good guide helps.
Conditions can differ from one submarket to the next, and between building classes in the same area. Some landlords are more motivated to make a deal than others.
Tenants who understand the market, and who have an advocate who knows it well, are in a better position to negotiate. These seven questions help you choose that advocate.
Ask any rep for current vacancy, asking rent, and concession data for the submarkets you are considering.
Question 1
Who do you actually represent in this transaction?
Watch for
Dual agency
- One broker represents both the landlord and the tenant.
- Both sides’ interests sit with the same person, which can limit how hard they push for you.
Look for
Exclusive tenant representation
- The broker works only for you, the tenant.
- You get an advocate focused on your business interests.
Ask the rep to confirm in writing who they represent and how they handle any conflict of interest.
Question 2
What are your fees, and how are you paid?
A tenant rep’s fee is typically paid by the landlord, from a leasing commission that is already built into the deal.
Leasing commission (typically paid by the landlord).
Without a rep
You negotiate alone
- The landlord’s broker typically keeps the full commission.
- No one at the table is working for you.
With a rep
You have an advocate
- The commission is typically shared between the landlord’s broker and your tenant rep.
- Your tenant rep negotiates on your behalf.
Ask the rep to explain in writing how they are paid, by whom, and whether any fee could ever fall to you.
Question 3
Do you have access to off-market or unlisted spaces?
The iceberg effect
What listing sites show
- Public listing sites show the spaces landlords choose to advertise.
Beyond the listings
What relationships can surface
- Spaces that are in negotiation.
- Spaces coming available soon.
- Spaces intentionally kept off-market.
Ask how the rep finds space beyond public listings, and how they will keep you updated as new options appear.
Question 4
When should we start our office search?
Many advisors suggest starting 12 to 18 months before your lease expires.
- More time: the landlord knows you could still move.
- Less time: the landlord knows a move may not be possible in time.
The right start date depends on your size, build-out needs, and how many options you want to compare.
Question 5
What is actually negotiable?
Often the biggest levers
- Base rent
- Free rent period
- Tenant improvement (TI) allowance
- Renewal option terms, to lock in future rates
Also worth negotiating
- Operating expense (CAM) caps
- Early termination rights
- Expansion options
- Parking costs and personal guarantees
What you can achieve depends on the building, the market, and your term. Ask your rep for recent comparable deals.
Question 6
What do you look for on tours that I might miss?
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HVAC zoning
Zoning and after-hours HVAC rules can raise your operating costs.
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Column placement
Columns can limit furniture layouts and how many people fit comfortably.
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Loading and freight access
Dock and elevator access matter for move-in and future furniture or equipment moves.
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Ceiling height
Affects how open and comfortable the space feels.
Question 7
How will you help us plan for move-in and furniture costs?
Furniture, cabling, and moving costs often land around the same time as security deposits and the first rent payments.
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Total cost
Include build-out, furniture, technology, and moving in the total occupancy cost, not just rent.
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Timing
Line up the lease timeline with furniture lead times and your move-in date.
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Options
Compare buying, leasing, and subscription furniture so the upfront cash need fits your budget.
Recap
Bring these seven questions to every interview.
- Who do you represent in this transaction?
- What are your fees, and how are you paid?
- Can you find off-market or unlisted spaces?
- When should we start our search?
- What is actually negotiable for us?
- What do you check on tours that I might miss?
- How will you help us plan move-in and furniture costs?
