Jesse Whalen, Vice President of The Office Group at Bull Realty, argues that companies leasing office space face the most significant disadvantage in commercial real estate when they forgo professional representation.
“If there’s one person in commercial real estate across all sectors who needs a broker more than anybody else, it’s a company occupying any kind of space,” Whalen says. The reason is straightforward: “You don’t know what you don’t know.”
Whalen points out that tenants rarely negotiate leases, often only once a decade, while landlords and their agents handle these deals regularly. This infrequency creates a significant knowledge gap, leaving tenants unfamiliar with market conditions, lease terms, and negotiation strategies.
This imbalance in experience often leaves tenants at a disadvantage in negotiations. Landlords and their representatives work on leases daily, gaining deep familiarity with standard terms and market trends. Tenants, by contrast, may face these decisions only once every ten years.
“A lot of them don’t know what the terms mean, how they impact the deal, or what should and shouldn’t be negotiated,” Whalen says. He notes that tenants often need detailed guidance to understand lease clauses and their implications.
The knowledge gap also extends to current market conditions. “If you only do this once every 10 years, you’re not going to know what the market knowledge is behind negotiating a good deal,” Whalen says. Entering negotiations without this information can lead tenants to accept unfavorable terms simply because they don’t realize better options exist.
Whalen sees a consistent pattern: companies leasing office space without a broker often don’t realize what they could have negotiated. “I see it time and time again. If you go in unrepresented, that’s your prerogative, but it’s not a smart decision because you could be leaving a lot of money on the table that you didn’t know you could ask for,” he explains.
Key financial terms, such as operating expenses, tenant improvement allowances, lease commencement dates, and permitted use clauses, are negotiable and can significantly affect a tenant’s total costs. Whalen says unrepresented tenants frequently accept the landlord’s initial offer without questioning whether it’s competitive or negotiable.
For example, in the current Atlanta market, “Most tenants are receiving anywhere from six to eight dollars a square foot per year of the lease for a tenant improvement allowance,” Whalen notes. Unrepresented tenants often don’t know whether this allowance is standard or if they can negotiate a better deal, missing opportunities to improve their lease terms.
Whalen emphasizes that market knowledge is a key advantage brokers bring to the table. Brokers are aware of which buildings have vacancies, what incentives landlords are currently offering, and how broader market conditions impact negotiations.
“The longer you’re in this business, you start to build relationships with landlord representatives whose clients are the building owners,” Whalen says. These relationships provide insights into available spaces and landlord motivations that are not publicly listed.
He also highlights the importance of managing timelines. “One of the main things I pride myself on with my clients is keeping them on a timeline and making sure they know what to expect,” he says. “I do this all day, every day, so I know how long things take and what steps are involved in the lease process.”
The persistent knowledge gap has shaped Whalen’s approach to tenant representation. He focuses on educating clients about the leasing process and maintaining transparency at every stage.
“When I start on an assignment, I usually provide a timeline that’s subject to change, but outlines how long certain things take,” Whalen explains. This proactive planning helps clients avoid the delays and surprises that often catch unrepresented tenants off guard.
Whether more companies will recognize the value of professional representation may depend on their awareness of the hidden costs of going it alone. For now, Whalen observes, many businesses still try to lease space without a broker, not realizing what they are giving up in the process.
The stakes are high: companies that forego representation can end up with leases that cost more and offer less flexibility than necessary. According to Whalen, ensuring expert guidance is not just about avoiding mistakes – it’s about capturing value that most tenants don’t even know is available.
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