When a company leases new premises, there is often a broker involved. But it is not always clear who the broker works for, or who pays. It is worth knowing before you start, because it affects which premises you get to see and who looks after your interests when the terms are negotiated.
The letting agent works for the landlord
Vacant commercial premises are usually marketed by the landlord or by a letting agent the landlord has hired. The letting agent’s job is to find a tenant for specific premises, on good terms for their client. That does not mean you will be treated badly, but it does mean the agent shows you their premises, not the whole market. If you want to compare several options, you will often have to deal with several agents and landlords at the same time.
The tenant advisor works for you
A tenant advisor, also known as a tenant representative, is hired by the tenant. The advisor maps your needs, reviews the market, negotiates with landlords and helps with the lease agreement, which in Norway is usually based on the meglerstandard. The advantage is that you have someone who represents only you. The service is most common in larger processes, where floor area and contract value are large enough for it to pay off. How the fee is calculated and who pays it is set out in the engagement agreement, so clarify this before you start.
Where Spacefinder fits in
Spacefinder resembles a letting agent in how we are paid. Our fee comes from the landlord when a lease is signed, and the service is free for you as a tenant. The difference is that we do not work for a single landlord. We collaborate with leading real estate operators and start from what you need, not from which premises we have been hired to let. You get one point of contact from needs analysis to viewing and lease, and through our off-market request we also reach landlords who are not actively advertising. Because the landlord pays us, we do not represent you in negotiations the way a tenant advisor you pay yourself would. We help you compare offers and understand the terms, but it is important that you know how the model works. Read more about how Spacefinder works.
What fits your business?
If you are a small or medium-sized business that wants an overview of the market and help through the process at no cost, Spacefinder is built for you. If you have already found one specific space, you might as well contact the letting agent or landlord directly. If you are leasing a large floor area and want someone who represents only you in negotiations, it may pay off to hire a tenant advisor.
FAQ
What is the difference between a letting agent and a tenant advisor? The letting agent is hired by the landlord to let the premises. The tenant advisor is hired by the tenant to find and negotiate the right premises.
Do I have to pay the broker when leasing commercial space? Not when the broker is hired by the landlord. In that case the landlord is the client. If you hire a tenant advisor yourself, you agree the fee in the engagement agreement.
Why is Spacefinder free for tenants? We receive a fee from the landlord when a lease is signed. You pay nothing and are not committed to anything.
When does it pay off to use a tenant advisor? Typically in large processes with a lot of floor area and high contract value, where you want an advisor who represents only you.
