Tenant reps tout lack of conflicts

Should tenants hire firms focusing on them or those serving landlords as well?


from The Wall Street Journal, August 9, 2006


"There are two sides of a debate over representation of tenants in commercial real estate transactions.


Tenant representative firms say:


* Full service brokerages serve two masters, landlord and tenant.


* Full service brokerages have incentive to seek higher rent and lower vacancies.


* Tenant rep firms have more incentive to innovate to lower occupancy costs.


* Tenant rep firms have made the biggest inroads for law firms.




Full service brokerages say:


* Their disclosure of potential conflicts is rigorous and mitigates conflicts.


* Working for landlords gives them better access to data and space that is not public yet.


* Some tenant rep firms have their own conflicts, such as property management arms.


Real estate is still a relationship driven business."

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