How does tenant representation work for tech companies nationwide?

A tenant representation broker represents the company that will occupy the space, not the building owner. Landlords have their own leasing agents whose job is to lease the building on the best terms for the owner. A tenant rep sits on the other side of the table, compares options across many buildings and negotiates for the tenant.

In a standard office lease, the broker commission is paid by the landlord, not the tenant, as part of the lease transaction. That arrangement should be spelled out in your written agreement with the broker so there are no surprises.

In Illinois, the Real Estate License Act presumes that a licensee is the designated agent of the consumer they are working with, unless a written agreement establishes a different relationship (225 ILCS 454/15-10). Whatever state you are in, get the representation relationship in writing and make sure it says clearly whom the broker represents.

TAG is a Chicago-based tenant representation firm that works with technology, software and data companies here and in other markets, and has completed 500+ transactions since 2008.

Every search is different, but most follow the same sequence. Knowing it helps founders and operations leaders see where their input matters most.

1. Needs analysis: agree on headcount range, hybrid pattern, location boundaries, budget, technical requirements and timing.
2. Market survey: identify every space that fits, including sublease, spec suites and space that is not yet publicly listed.
3. Tours: visit a short list, ideally with the people who will decide, and note what each space would need.
4. Requests for proposals: ask several landlords for written proposals on rent, concessions, build-out and lease rights.
5. Comparison: line the proposals up on total cost and key terms, not just the headline rent.
6. Letter of intent: negotiate the main business terms with one or two finalists before lawyers draft the lease.
7. Lease negotiation: work through the lease with your attorney so the document matches the agreed terms.
8. Build-out: coordinate design, approvals and construction so the space is ready on schedule.
9. Move-in: confirm the space is delivered as agreed, then plan for the next decision date in the lease.

The needs analysis is where many searches go wrong. A clear brief with must-haves, wants and nice-to-haves makes every later step faster.

Many tech companies assume that if they plan to stay, there is no reason to look elsewhere. In practice, your current landlord knows how costly and disruptive a move is. Without credible alternatives, you have little leverage on rent, free rent, improvement dollars or lease flexibility.

Running a real market survey and collecting competing proposals changes that. Even if you renew, the landlord is negotiating against actual offers rather than your reluctance to move. The goal is not to bluff; it is to know what the market will give you.

Do not tell your landlord you plan to stay before you have seen what else is available. A renewal negotiated with alternatives in hand is a different negotiation.

There is no single right lead time, but starting too late is one of the most expensive mistakes a tenant can make. The market survey, proposals, negotiation, design and construction each take time, and landlords know when a tenant is running out of it.

Start well before your expiration or target move date. Larger or more complex requirements need more lead time: more square footage, a custom build-out, special power or cooling, several locations at once or a hard deadline all push the start date earlier. Check your current lease for notice dates on renewal options, because missing one can take a choice off the table.

• Find your expiration date and any renewal or termination notice deadlines.
• Work back from your target move date, leaving room for design, permits and construction.
• Start earlier if you need space in more than one city or a significant build-out.

Growing technology companies often end up with a headquarters in one city, satellite offices in others and leases that expire at different times. Handling each one separately, with different brokers and no shared view, makes it hard to see total cost or to use your size as leverage.

A coordinated approach keeps one point of contact and one set of standards while using local market knowledge in each city. It also lets you line up expirations with your plans, so you are not locked into a large lease in a city where the team is shrinking while scrambling for space where it is growing.

That range of options, from staying and downsizing to coworking to a new build-out, is what a national tenant rep process should put in front of you in each market. Coordinating searches and renewals across cities is part of the tenant representation work we do for tech clients.

You do not need every answer before the first call, but these items make the needs analysis far more productive.

• ✓A copy of each current lease, including amendments and notice dates.
• ✓A headcount forecast by location, in ranges.
• ✓Your hybrid attendance pattern on busy days.
• ✓Location boundaries for each market, and where the team lives.
• ✓Technical needs such as server rooms, extra power, cooling or fiber.
• ✓Budget guidance and who approves it.
• ✓Your target move-in or decision date for each location.
• ✓The name of the attorney who will review the lease.