How a tenant representation broker finds, compares and negotiates industrial and commercial space for your business in Kern County, California, and why the landlord usually pays the fee.
A tenant rep broker is a licensed commercial real estate broker who represents only the tenant in a lease. The broker defines your space needs, searches listed and off-market buildings, compares proposals on a total-cost basis, negotiates the letter of intent and lease, and follows the deal through move-in. In most California industrial leases, the landlord pays the commission out of a leasing fee it has already budgeted.
Key takeaways
- A tenant rep broker owes loyalty to the tenant. The listing broker on the sign out front owes loyalty to the landlord.
- In most industrial and commercial leases the landlord pays the tenant rep’s commission, so the tenant usually pays nothing out of pocket.
- The lowest asking rent is not always the cheapest deal. Free rent, escalations, improvements and NNN charges change the real cost.
- California has required written agency disclosure on commercial sales and on commercial leases longer than one year since Jan. 1, 2015.
- Start at least 12 months before your lease expires or you need to move, and earlier if the space needs a build-out or a power upgrade.
What is a tenant rep broker?
A tenant rep broker, short for tenant representation broker, works for the business that will occupy the space, not for the property owner. One national brokerage describes the role as representing the occupier when it leases, buys or disposes of commercial space.
The other side of the table is the landlord’s listing broker, whose job is to lease the building on the best terms for the owner. That broker can be helpful and honest with you, but the legal duty runs to the landlord. A tenant rep’s duty runs to you. Our guide to what a landlord broker does covers the other side, and our article on choosing a commercial real estate broker explains how to compare firms.
In California, anyone who negotiates leases for compensation must hold a real estate license. Business and Professions Code Section 10131(b) puts leasing and soliciting tenants inside the definition of a broker. The state publishes a California DRE public license lookup for every licensee.
What does a tenant rep broker do, step by step?
A good tenant rep runs the search like a project, with a written plan and a timeline that works backward from your move-in date. The table shows how the work typically breaks down on an industrial or flex lease in Kern County. For the full process from the tenant’s side, see our guide to how to lease industrial space.
What a tenant rep broker does at each stage of a lease
| Stage | What the tenant rep does | What you get |
|---|---|---|
| 1. Needs analysis | Interviews you on headcount, inventory, racking, trucks per day, power, yard and growth | A written requirement: size, specs, budget, target date |
| 2. Market survey | Pulls listed, sublease and off-market options | A shortlist with rents, specs, pros and cons |
| 3. Tours | Schedules and attends tours against your spec list | Side-by-side notes and photos |
| 4. Request for proposals | Asks several landlords for written proposals at once | Competing offers, not one quote |
| 5. Financial comparison | Models base rent, escalations, free rent, NNN charges, tenant improvements and moving costs | An apples-to-apples cost comparison |
| 6. LOI negotiation | Negotiates rent, term, concessions, options, use and improvements | Agreed business terms before lawyers start |
| 7. Lease review | Works with your attorney so the lease matches the LOI | A lease that reflects your deal |
| 8. Build-out and move-in | Tracks landlord work, permits and delivery dates | Space ready when you are |
| 9. After signing | Calendars option deadlines, renewal windows and reconciliations | No missed deadlines |
The letter of intent is where most business terms get settled, before the lease is drafted.
What does a tenant rep check on an industrial building?
A tenant rep screens each option for the physical features your operation needs. Office tenants mostly care about layout and finishes. Industrial tenants can sign a five-year lease on a building that physically cannot run their operation, and that mistake is expensive to undo.
The needs differ by user. A Delano ag cold-storage business needs power, insulated space and room for refrigerated trucks. A Bakersfield trucking company may need a paved, fenced yard and zoning that allows outdoor truck parking. A distribution user near Tejon on I-5 cares about clear height, dock count and trailer parking far more than the office build-out. The checklist:
- Clear height and column spacing for your racking plan. See our guide to industrial building specs.
- Dock-high and grade-level doors, truck court depth and trailer parking.
- Power: amps, voltage and how long PG&E would take to upgrade service. See power for industrial users.
- Fire sprinklers and high-piled storage rules if you stack product high. See ESFR sprinklers and storage permits.
- Zoning and permitted use under City of Bakersfield or Kern County rules. See industrial zoning in Bakersfield and Kern County.
- Yard, fencing and outdoor storage rights, which are often limited in the lease even when zoning allows them.
Who pays a tenant rep broker?
In most industrial and commercial leases, the landlord pays. The owner’s listing agreement sets a leasing commission and usually provides for sharing it with a cooperating broker who brings the tenant. The tenant rep is paid from that shared fee when the lease is signed. Our article on how commercial real estate commissions work explains how fees are calculated and split.
A national brokerage’s tenant guide makes the same point: “The landlord’s budget includes brokerage fees within their rent structure.” When a tenant goes without a broker, the brokerage says, the landlord typically assigns the unused tenant-broker fee to its own agent, the asset or the property manager. Skipping representation rarely lowers your rent. It usually just changes who keeps the fee.
There are exceptions, such as an owner who will not pay a cooperating fee or a consulting assignment that does not end in a lease. A written representation agreement should cover those cases. The AIR CRE forms library, widely used in California, added lessee-broker exclusive and non-exclusive representation agreements in August 2025.
Isn’t the listing broker already helping me?
The listing broker can answer questions and send you a lease, but that broker represents the landlord. California has required written agency disclosure in commercial deals since Jan. 1, 2015. That year SB 1171 extended the residential rules in Civil Code Section 2079.13 and following sections to commercial real property, including leases longer than one year. Under those rules, “buyer” includes a lessee and “seller” includes a lessor.
One brokerage can represent both sides as a dual agent, but only with the written consent of both parties. A dual agent may not tell one side the other’s bottom line without express permission, which limits how hard anyone can push for you. Our article on dual agency in California commercial real estate explains how it works.
Tenant rep vs. listing broker vs. dual agent
| Tenant rep broker | Landlord (listing) broker | Dual agent | |
|---|---|---|---|
| Owes loyalty to | Tenant only | Landlord only | Both, with written consent |
| Advocates on rent and terms for | Tenant | Landlord | Neither side exclusively |
| Shows other buildings | Yes, the whole market | Usually only its own listings | Varies |
| Can share your budget ceiling with landlord | No | Not applicable | No, without your express consent |
| Typically paid by | Landlord, via shared commission | Landlord | Landlord |
When should you hire a tenant rep broker?
Earlier than most tenants think. A national brokerage’s April 2026 guidance says “a practical baseline is to begin no later than 12 months before the end of the lease.” Larger or more complex requirements, the same guidance adds, often need 18 to 36 months. Industrial moves that need racking permits, dock work or new electrical service fall in the complex group. For renewals specifically, see when to start your commercial lease renewal.
Renewal options on the AIR CRE option addendum require written notice within a window the parties fill in when the lease is signed. Miss it and the option can be lost.
Market conditions matter too. A regional brokerage report put Bakersfield industrial vacancy at 9.55% in Q2 2026, with an average NNN asking rate of $10.05 per square foot. The regional brokerage report does not state a period; this article treats it as annual (about $0.84 per SF per month). With that much space available, a well-run search can create real competition between landlords, if you leave time to use it.
What should be in a tenant representation agreement?
Many tenant reps ask for a short written agreement before they contact landlords for you. That is normal. A good agreement covers these points:
- Scope: lease only or lease and purchase, which submarkets, what size range.
- Term: a set period tied to your move date, with a way out if service falls short.
- Exclusive or non-exclusive: exclusive gets more commitment, while non-exclusive keeps options open.
- Compensation: who pays, including when a landlord will not pay a cooperating fee.
- Dual agency: how the firm handles buildings it also lists.
- Protection period: whether a fee is owed if you lease a building the broker showed you shortly after the agreement ends.
Worked example: comparing two proposals on a 40,000 SF Bakersfield warehouse
Say your business needs about 40,000 SF of warehouse space in Bakersfield on a five-year (60-month) NNN lease, and your tenant rep gets two proposals back. These numbers are illustrative only. Building A is quoted at $0.84 per SF per month, close to the market average in brokerage reports, with 3% annual increases and three months of free rent. Building B is quoted at a lower $0.80 per SF per month, but with 4% annual increases and one month free.
Building B looks cheaper on the flyer. Over the full term, Building A costs about $8,000 less in base rent, because the larger free-rent package outweighs the higher starting rate. Neither figure includes NNN charges, which a tenant rep would also compare, since taxes, insurance and maintenance can differ between buildings. For more on this math, see net effective rent explained.
Base rent over 60 months (illustrative)
| Building A | Building B | |
|---|---|---|
| Starting rent | $0.84 / SF / month ($33,600 / month) | $0.80 / SF / month ($32,000 / month) |
| Annual increase | 3% | 4% |
| Free rent | 3 months ($100,800) | 1 month ($32,000) |
| Total scheduled base rent | $2,140,644 | $2,079,868 |
| Base rent actually paid | $2,039,844 | $2,047,868 |
| Average effective rent | about $0.850 / SF / month | about $0.853 / SF / month |
Frequently asked questions
Does using a tenant rep broker raise my rent?
Generally no. Landlords budget a leasing commission when they list a building, and that cost is already baked into their rent expectations. Without a broker on your side, the landlord or its own broker typically keeps the share a tenant rep would have received. Your rent follows the market and the quality of the negotiation, not whether you hired help.
How much does a tenant rep broker cost the tenant?
In most California industrial and commercial leases, nothing out of pocket. The landlord pays the commission, and the tenant rep is paid from the fee the listing broker shares. Owners who refuse to pay a cooperating fee and consulting-only assignments are the usual exceptions.
Can the listing broker represent me too?
Yes, but only if you and the landlord both agree in writing to dual agency. California requires agency disclosure in commercial sales and in leases longer than one year. A dual agent owes duties to both sides and cannot reveal either party’s bottom line without consent, so the broker cannot push for your side the way a tenant-only broker can.
Do I need a tenant rep broker for a lease renewal?
It often pays to have one. Tenants tend to leave the most on the table at renewal because the landlord knows moving is costly. A tenant rep can price comparable space elsewhere, collect competing proposals and use them to negotiate rent, improvements and new options. The search usually starts at least 12 months before expiration, ahead of the lease’s option notice deadline.
Is a tenant rep broker worth it for a small space?
Usually, yes. A 5,000 SF shop in Bakersfield is still a multi-year commitment worth hundreds of thousands of dollars in rent and NNN charges. Small-space leases also tend to carry less negotiated language, so clauses on repairs, HVAC, use and assignment matter more. The landlord normally pays the commission, so representation adds advice without adding cost.
What is the difference between a tenant rep broker and a real estate attorney?
A tenant rep handles the market side: finding space, comparing proposals and negotiating business terms such as rent, free rent, improvements and options. A real estate attorney reviews and negotiates the lease document and advises on legal risk. On a sizable industrial lease, most tenants benefit from both, with the broker managing the deal and the attorney protecting the contract language.
If you are planning a move, an expansion or a renewal anywhere in Kern County, we can talk through your requirement and the current market at no cost. Call Kern CRE at 855-KERN-CRE (855-537-6273) or contact us. Get Kern County CRE news monthly: subscribe to the Kern CRE report.
Sources
- Maximizing Value: Why Tenants Need Representation, Cushman & Wakefield.
- Tenant Representation Service, Cushman & Wakefield.
- Senate Bill No. 1171, Chapter 200 (Real property transactions: agents: obligations), California Legislature, approved Aug. 15, 2014.
- Newly Amended Dual Agency Disclosure Law: Much Ado About Nothing, Allen Matkins, January 2015.
- Legal Update: Commercial Real Estate (SB 1171 agency disclosure), Miller Starr Regalia, December 2014.
- Business and Professions Code Section 10131, Justia (California code), 2025.
- Public License Lookup, California Department of Real Estate.
- AIR CRE Contracts: List of Contracts as of 08/21/2025, AIR CRE, August 2025.
- Latest Contracts Updates (CA Contracts Update, Aug. 28, 2025), AIR CRE, August 2025.
- Contracts Seminar: Option(s) to Extend Term, Standard Lease Addendum materials, AIR CRE, November 2021.
- The Ideal Timeline for Market Exploration Before Your Lease Ends, Colliers, April 28, 2026.
- Q2 2026 Bakersfield, CA Industrial Market Overview, Lee & Associates, July 2026.
About this article
Kern CRE prepared this article with help from AI research and writing tools. An editor reviewed the draft, checked its facts against the sources linked above and edited it for accuracy and clarity. It is general information, not legal, tax, investment or financial advice; talk with a qualified professional about your situation.