Tenant Representation: What It Is, What It Costs and What You Sign
Tenant representation means a licensed broker acts for the company leasing a space, and not for the building. The same role is called tenant rep, tenant broker or tenant advisor. The service runs from a written requirement through the shortlist, tours, proposals, the letter of intent and the lease. In most transactions the landlord pays the broker fee, so the tenant seldom writes a check for it. The paper that sets it up is a tenant representation agreement, which covers scope, term, geography, exclusivity and how it ends. Agency leasing is the opposite seat: a broker hired by the owner.
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Start my shortlistUpdated 2026-10-03 · Nomad Group
Part one, the service: a broker on the tenant's side of the table
The representative starts from your numbers: headcount, timing and budget. Those become a written requirement, and the requirement becomes a first shortlist. A first shortlist is three to five floors that fit and can be toured in one afternoon, drawn from direct space, subleases and floors that are not yet publicly marketed.
From there the representative runs the tours, arranges test fits on the finalists, asks the landlords for proposals, puts them on a common footing, and then negotiates first the letter of intent and then the lease, with your attorney reviewing the document. The brokerage page follows each stage.
The live block here is sized for roughly 34 people, as an example of what a first shortlist for a mid-size team draws on.
Part two, the fee: who pays for tenant representation
In most transactions the landlord pays the broker fee, as a commission when the lease is signed. The tenant does not write a separate check. Treat that as the norm and not as a rule, because each deal's own paperwork decides. A sublease is the usual exception, where the outgoing tenant tends to pay. Have any representative explain their pay on your deal before you sign.
Part three, the paper: the tenant representation agreement
The agreement is the contract that makes a broker your representative. Whatever it is titled, it should answer five questions.
- Scope: which services are included, from the search to the lease, and whether help through the buildout is part of it.
- Term: the date it ends.
- Geography: which neighborhoods and kinds of space it covers.
- Exclusivity: whether you have agreed to work through this broker alone.
- How it ends: how either side can terminate, and what is owed afterward on space the broker introduced.
The tenant representation agreement entry reads each clause, and your attorney should confirm what any agreement binds you to. Ask any firm, Nomad included, for its agreement early, so the five answers are in hand before the tours.
Tenant representation and agency leasing are opposite seats
Agency leasing is a broker hired by a building's owner to lease that building. It is not a version of tenant representation. It is the other side of the same deal. Many firms do both, Nomad among them: it offers agency leasing and owner representation, and when the search is yours it works for you. Should your shortlist include a building Nomad leases for its owner, New York requires informed consent from both sides before one broker acts for both.
Floors that fit a team of 34
Live from our listings · 6 of the 18, smallest firstA team of 34 plans on about 5,950 square feet at 175 a person. 18 floors on our book sit in the range that fits, 5,950 to 10,710 square feet, asking $43 to $200 per square foot per year on the 16 with a published rent.
- Floors
- 18
- Sizes
- 6,000-10,562 sq ft
- Asking rent
- $43-$200 / sq ft
- 22 West 27th Street, Entire 7th Floor 6,000 sq ft $57/sq ft NoMad about 34 people
- 540 Broadway, Entire 2nd Floor 6,350 sq ft $85/sq ft SoHo about 36 people
- 500 Fifth Avenue, Entire 55th Floor 6,928 sq ft $125/sq ft Bryant Park about 40 people
- 32 Old Slip, Partial 32nd Floor 6,997 sq ft $64/sq ft FiDi about 40 people
- 237 West 27th Street, Entire 11th Floor 7,158 sq ft $44/sq ft Chelsea about 41 people
- 45 West 45th Street, Entire 10th Floor 8,230 sq ft rent on request Midtown about 47 people
The full guide
This page is the short answer. The long one, with the numbers worked through, is here:
Related topics
- Tenant Representation Guide: What to Verify Before You Hire, Then the Four Steps
- Why Use a Broker for Commercial Real Estate, and What It Really Costs
- Commercial Real Estate Tenant Advisory Services: What Good Looks Like
- Startup or Growth Stage: How Commercial Real Estate Brokers Run Two Different Searches
What does a first shortlist from a tenant representative contain?
Three to five floors that fit the requirement, each with its size and asking rent, close enough together to tour in one afternoon. At Nomad a first shortlist can be ready within 24 hours of a brief.
Does tenant representation cover subleases as well as direct leases?
Yes. A representative surveys both, since a sublease is often faster and cheaper and a direct lease brings concessions and options. The pay differs: on a sublease it is usually the outgoing tenant who covers the commission. Sublease explains the structure.
Must I sign an agreement before a representative shows me space?
That depends on the firm. Some ask for a signed agreement first, and a short one with a clear exit is reasonable. Others open with a brief and settle the paper later. Find out which you are dealing with on the first call, at Nomad as anywhere.
Can one firm offer both tenant representation and agency leasing?
Yes, and many New York firms do. What matters is disclosure: the firm should tell you, building by building, where it also acts for the owner, and should not act for both sides without the informed consent of each.
Talk to a broker
Want this answered for your team?
Tell us three things: team size, timing, budget. A first shortlist can be ready within 24 hours, with the asking rent on every floor that publishes one.
- Within the houra broker reaches out during business hours, no automated triage
- On your sidewe work for you on your search, and the landlord usually pays our fee
- Open pricingasking rent published for 46 of 49 floors, size and address for all
- 300+ officesdelivered in New York, 2M+ sq ft leased
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