Understanding Two Commercial Real Estate Models — and Why It Matters for Occupiers

Business leaders evaluating office, industrial, medical, or retail space often assume commercial real estate firms operate the same way. Yet the fundamental structure of representation can materially shape the strategy, negotiation posture, and financial outcome of a lease or acquisition.

Two primary models exist in the market today: tenant-only representation and traditional dual-agency brokerage.

Understanding how they differ — and the obligations each model creates — allows occupiers to make informed, strategic decisions.

What Is Traditional Brokerage?

Traditional brokerage firms represent both landlords and tenants. Global organizations such as JLL, CBRE, and Cushman & Wakefield maintain large landlord-representation divisions that manage listings and property strategies for building owners.

Under this model:

• Landlord and tenant interests may be served by the same organization
• Brokers balance property marketing obligations with tenant needs
• Revenue relationships with landlords are ongoing and substantial
• Listings and landlord clients can influence market recommendations

Traditional brokerage provides scale and market coverage. However, its structure introduces an inherent tension: one entity serving interests on both sides of the negotiating table.

What Is Tenant Representation?

Tenant-only representation firms exclusively serve occupiers. They do not represent building owners, manage listings, or market property on behalf of landlords.

Under a tenant-only model:

• Loyalty and fiduciary duty are 100% aligned with the tenant
• Every property is evaluated objectively
• Competitive tension is encouraged to secure better terms
• Proprietary insights and negotiation strategies are focused solely on the occupier

This structure removes the balancing act present in traditional brokerage and ensures clarity of purpose throughout the real estate process.

Why Structure Matters

Commercial real estate is not simply transactional. It is strategic — influencing cost structure, operational performance, workforce access, and long-term flexibility.

Representation structure impacts:

In environments where concessions, incentives, or control rights are at stake, undivided advocacy can materially alter outcomes.

Common Misconceptions

“Dual-agency firms have better access to space.”
Tenant-only firms access all market opportunities. Access is not determined by loyalty — it’s determined by relationships, technology, and diligence.

“Using one firm simplifies the process.”
Efficiency is valuable, but neutrality can cost significantly more than time savings.

“Full-service firms negotiate better.”
Capability is not the differentiator — conflict structure is. When the business model aligns fully with one client type, advocacy strengthens.

Where the Difference Becomes Most Meaningful

The distinction matters most when decisions drive multi-year financial and strategic outcomes:

• Lease renewals and renegotiations
• Build-out negotiations and TI planning
• Expansion and contraction rights
• Portfolio strategy across multiple markets
• Industrial and manufacturing site selection
• Medical, regulated, or specialized space needs

In each case, clarity and alignment support better control and leverage.

How Keyser Approaches Representation

At Keyser, we represent only occupiers.

We do not market property or represent building owners.

Our advisors operate without divided incentives, allowing for:

• Full-market evaluation
• Objective comparison of alternatives
• Strategic leverage through competition
• Decision support based exclusively on client goals

This conflict-free foundation is supported by global reach, AI-enabled analytics, and comprehensive advisory capabilities across industries and geographies.

Conclusion

Representation structure is not simply a matter of preference — it reflects a strategic choice. For organizations seeking transparency, leverage, and advocacy, understanding the difference between traditional and tenant-only brokerage models is essential.

The most effective real estate strategy begins with alignment.

Guidance for Business Leaders

Before beginning a real estate process, ask your advisor:

• Whose interests do you represent in this transaction?
• Do you represent landlords in this market or portfolio?
• How do you eliminate bias when recommending properties?

Clarity at the start supports stronger outcomes at the end.

If you would like a confidential review of your current lease strategy or upcoming requirement, we’re here to help — with no obligation and no conflicts.

Contact Us:

Address: 6400 E. McDowell Rd, Ste. 100, Scottsdale, AZ 85257

Phone: (602) 9. KEYSER

Email: info@keyser.com

Free Lease Review:

Get clarity and confidence before your next negotiation. Request your complimentary lease review here → www.keyser.com/lease-review

Frequently Asked Questions:

Q: What Is the Main Difference Between Tenant Representation and Traditional Brokerage?

A: Tenant-only representation firms advocate exclusively for occupiers, while traditional brokerage firms—such as JLL, CBRE, or Cushman & Wakefield—represent both landlords and tenants.

In a tenant-only model, every property is evaluated objectively and all negotiation strategies serve the occupier’s best interest. In a traditional model, brokers must balance landlord relationships with tenant needs, which can limit advocacy and transparency.

A: Representation structure determines who your broker is obligated to protect.

A conflict-free tenant representative can negotiate aggressively, maintain confidentiality, and compare every option in the market.

By contrast, a dual-agency or traditional brokerage model divides loyalty, potentially reducing leverage, concessions, and flexibility for the tenant.

Alignment of representation directly impacts cost, control, and long-term strategy.

A: Before engaging a commercial real estate advisor, ask direct questions:

• Do you represent landlords in this market?

• Are any of the properties you’re showing listed by your firm?

• How do you ensure your recommendations remain unbiased?
  A true tenant-only firm—like Keyser—never represents landlords or property owners. This guarantees undivided advocacy, full market access, and strategic leverage throughout the negotiation process.