The Hidden Costs for Commercial Tenants. Does Going Direct Really Save Money?

Why “Going Direct” Can Cost Commercial Tenants Far More Than They Realize

When a business owner begins exploring new space or planning a relocation, one of the biggest decisions they face is whether to work with a commercial broker or contact landlords directly. Many tenants assume that by skipping commercial tenant representation and “going direct,” they’ll negotiate a better deal.

It sounds logical — but in commercial real estate, it’s almost always misleading… and often very expensive.

The Misconception: “If I go direct, I’ll get a better deal.”

Tenants frequently believe that landlords will reduce the rent or offer better terms if no broker is involved. But here’s the truth:

Landlords don’t discount rent just because the tenant isn’t represented.

Marketing budgets, listing fees, and commissions are already built into the landlord’s operating expenses. When a tenant approaches them without commercial tenant representation, the “savings” don’t go back to the business owner — they simply stay with the landlord or listing agent.

The Risk: Paying More Without Realizing It

When tenants negotiate alone, they’re up against a full-time professional who handles commercial leases every day. Without market insight or expert guidance, unrepresented tenants often accept:

• Above-market rents

• Lower tenant improvement allowances

• Higher annual rent escalations

• Unfavorable renewal or termination clauses

• Hidden or unnecessary operating expenses

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Even a small oversight in your commercial lease negotiation can cost tens — or even hundreds — of thousands of dollars over the life of the lease.

The Hidden Cost of Going Direct

Choosing not to work with a commercial real estate broker doesn’t remove cost — it removes protection.

A tenant-rep broker:

• Ensures you aren’t overpaying

• Uncovers options (including off-market spaces)

• Negotiates incentives and protections you may not know to request

• Levels the playing field with landlords who negotiate professionally every day

  
  

Without that support, the landlord holds more leverage… and the tenant often walks away with less value and more long-term risk.

Bottom Line

Going direct rarely saves money. In most cases, it leads to higher costs, weaker terms, and fewer protections for your business.

Ready to Protect Your Bottom Line?

If you’re planning a relocation, renewal, or expansion, you deserve an advocate on your side — at no out-of-pocket cost to you.

Schedule a free commercial tenant representation consultation and make sure your next lease works for your business, not against it.

Just say “Let’s talk” and I’ll help you get started