The short answer: a retail tenant representative, or tenant rep, is a licensed real estate broker who works for the tenant rather than the landlord. A tenant rep defines what the store needs, searches and compares space across the market, and negotiates the letter of intent (LOI) and the business terms of the lease. In most US retail deals, the tenant rep is paid from the leasing commission the landlord has already agreed to pay.
What does a tenant rep actually do?
Good tenant representation covers the whole path from a requirement to a signed lease:
- Defines the requirement. Size, frontage, parking, co-tenancy, signage, and for food concepts, power, ventilation and grease. A clear requirement keeps the search honest.
- Searches the whole market. Listed space, off-market space, and space that is about to come back because a tenant is leaving. A landlord's broker shows the landlord's inventory; a tenant rep compares across all of it.
- Compares options on the same basis. Total occupancy cost (base rent plus the charges passed through to the tenant), the landlord's contribution to the build-out, delivery condition, timing and risk, not just the asking rent.
- Runs the LOI. Keeps more than one landlord in play and settles the business terms before lawyers draft the lease.
- Supports the lease negotiation alongside your attorney, so the business points agreed in the LOI survive into the lease.
- Keeps the opening date realistic. Permits, contractor schedules and delivery dates all interact with the date rent starts.
Tenant rep, listing broker or consultant: who does what?
| Role | Works for | How it is usually paid |
|---|---|---|
| Tenant rep | The tenant | A share of the landlord-paid leasing commission |
| Listing broker | The landlord | The leasing commission in the landlord's listing agreement |
| Site selection consultant | The brand | A fee agreed with the brand |
The listing broker's job is to lease the landlord's property on the landlord's terms. The consultant's job is to decide which markets and trade areas deserve a search at all. The tenant rep's job is to get the right space on the right terms. Some firms combine the consulting and the representation, so the shortlist is grounded in the same analysis that chose the market.
Who pays the tenant rep?
In most US retail leases, the landlord budgets a leasing commission, often calculated as a percentage of the rent over the lease term, and shares it between the listing broker and the broker who brings the tenant. The tenant usually does not pay a separate fee. The commission is still part of the deal's economics, which is one more reason to make sure the person earning it is working for you.
Two practical points:
- Put the arrangement in writing. A representation agreement should define the market, the term and how the broker is paid. A careful broker also confirms the commission in writing with the landlord or listing broker before introducing you to a property.
- Know which legal relationship you have. It varies by state. In Florida, for example, a real estate licensee is presumed to work as a transaction broker unless a single agent relationship, or no brokerage relationship, is set up in writing. Ask which one your agreement creates.
When should you bring in a tenant rep?
Before you tour. Once you have called a landlord or the landlord's broker directly, the conversation has started without your own representative. A tenant rep earns the most when:
- you are entering a new market and do not yet know its corridors, rents or landlords;
- your company has no US credit history, so guarantees and security deposits will be negotiated hard;
- the store has to work: a first unit, a flagship, or a new format;
- you need a decision on a timeline and want several options moving at once.
What to ask before you sign a representation agreement
- Who will do the work? The person who presents the analysis should be the person who negotiates.
- How will the shortlist be built? Ask to see the reasoning behind it: demand, co-tenancy, access and economics, not just what is listed this month.
- What if you find a space yourself? Agree on it before you start.
- What is the scope and term? One market or several, for how long, and how either side can end the agreement.
- Are there conflicts? A broker who also lists property in your target corridor should tell you.
How Site Logic approaches tenant representation
Site Logic was built from the tenant's side of the table. Before founding it, Alex Bord negotiated hundreds of LOIs and leases inside operating companies, so the representation starts from what the store has to earn, not from what happens to be available. See how that experience was built at Citibank and Wild Fork, or read how we run tenant representation.
Related reading: How to negotiate a retail LOI and US retail lease terms explained.
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Frequently asked questions
Does the tenant pay the tenant rep broker?
Usually not directly. In most US retail leases the landlord agrees to pay a leasing commission, and the tenant's broker is paid from it, often by splitting it with the landlord's listing broker. The arrangement should be confirmed in writing before the broker introduces you to a property.
Is a tenant rep the same as the listing broker?
No. The listing broker is hired by the landlord to lease the landlord's property. A tenant rep works for the tenant and compares space across many properties and landlords.
When should a retail brand hire a tenant rep?
Before touring space. Once you have contacted landlords or their brokers directly, it is harder to bring in your own representative and keep one consistent negotiating position.
Do I still need a tenant rep if I already found the space?
You can still use one for the negotiation, but you lose the comparison with real alternatives, which is where much of a tenant's leverage comes from.