National vs Regional Tenant Representatives: Who Best Serves the Tenant?

When presenting tenant representation services, many large national brokerage companies claim that, because of their size and number of offices, they have access to better local market expertise throughout the United States.  Some claim to have experience with all property types and transactions in all markets.  They say that because of their depth, established intra-office relationships and internal fee sharing policies, they can better serve the needs of tenants with real estate requirements in multiple markets.  Many also claim that because of their landlord representation businesses and their other services, like property management and construction, they can better advise tenants seeking to acquire space. 

Regional and local real estate companies claim that they are more nimble, and have greater ability to move faster with less bureaucracy and less potential for conflicts of interest than their larger national competitors.  They claim that because they can selectively partner with any server provider around the country based on pertinent transactional history and expertise, they are better able to accommodate the needs of corporate occupants, and are not bound by restrictive internal corporate policies. 

This is not an issue of whether large or small brokerage companies close more transactions.  But, rather about which type of brokerage company better serves tenants. 

Who’s right? 

Copyright Real Estate Strategies Corporation 2010.  All Rights Reserved.

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5 Responses to “National vs Regional Tenant Representatives: Who Best Serves the Tenant?”


  1. 1 Kevin Maggiacomo January 22, 2010 at 7:31 pm

    Andrew – Strong post.

    My feeling is that the issue isn’t who services the tenant/client better, National vs. Regional, rather, which brokerages have scalable infrastructures? Brokerages, Regional and National, who have scalable, variable, low fixed cost operating models are generally stable, which allows the focus to be on client’s interests vs. company revenue and volume, which are all too often competing agendas.

    • 2 realstrat January 22, 2010 at 11:45 pm

      Assuming that low fixed cost and scalable infrastructure is the basis for providing superior service is an idea that a lot of business executives would challenge. While I agree that the ability for a company to properly manage its financial affairs is key, the question I posed is which business model (branded national or regional) best serves the corporate occupant community. Thanks very much for sharing your ideas. Keep ’em coming!

      • 3 Kevin Maggiacomo January 23, 2010 at 1:13 am

        Andrew – I understood the question posed in your post, my comment was meant to suggest that the more important set of alternatives, although seldom considered, is the powerful impact that a brokerage’s economic infrastructure can have on its ability to effectively service a client.

  2. 4 Geoffrey Kasselman, SIOR, LEED AP January 26, 2010 at 3:26 pm

    Most experienced or educated real estate clients would say that nearly all brokers produce comparable results within a range of +/- 10%, and that real estate results alone are typically only a modest part of a much broader project or strategic initiative, rendering that +/- results range as a rounding error in the overall scheme of things… What that means is that the formula for brokers is not really local or regional or national but rather relationships. The clients worth working with are those that know us and trust us ahead of everything else.


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THIS WORK IS DESIGNED TO PROVIDE PRACTICAL AND USEFUL INFORMATION ON THE SUBJECT MATTER COVERED AND REPRESENTS THE OPINION OF THE AUTHOR. HOWEVER, IT IS PROVIDED WITH THE UNDERSTANDING THAT THE AUTHOR IS NOT ENGAGED IN RENDERING LEGAL, FINANCIAL, ACCOUNTING, OR OTHER PROFESSIONAL ADVICE TO THE READER. IF LEGAL, FINANCIAL, ACCOUNTING, OR OTHER PROFESSIONAL ADVICE IS REQUIRED, THE SERVICES OF A COMPETENT PROFESSIONAL SHOULD BE SOUGHT. THE AUTHOR SPECIFICALLY AND EXPRESSLY DISCLAIMS ANY LIABILITY THAT MAY BE INCURRED AS A RESULT OF THE USE OR APPLICATION OF THE INFORMATION THAT IS CONTAINED IN THIS WORK.

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