Updated October 2026
For office tenants in Chicago and the suburbs, a tenant rep broker costs nothing out of pocket. The landlord budgets a brokerage commission into every office lease and pays it at signing, whether or not the tenant has its own representative. If you negotiate alone, that budget doesn’t come back to you as a discount; it typically goes to the landlord’s own broker. Tenant Advisors has represented only office tenants since 2004, and the landlord pays our fee.
Key Takeaways
- Tenant representation costs Chicago office tenants nothing directly. The landlord pays the commission at lease signing.
- The commission is already built into the landlord’s leasing budget. Going without a broker rarely lowers your rent.
- The same structure applies to renewals, relocations, and expansions.
- Subleases are the main exception: the commission is usually paid from sublease proceeds.
- Ask any broker who pays them and whether their firm represents landlords before you hire them.
Who Pays the Tenant Rep Broker in a Chicago Office Lease?
The landlord. When a landlord prices space, the leasing budget includes brokerage commissions alongside free rent and the improvement allowance. That commission is typically calculated on the total rent over the lease term and split between the landlord’s listing broker and the tenant’s broker. The tenant signs nothing that obligates it to pay a fee.
Does Skipping a Broker Lower My Rent?
Rarely. In the transactions we track and negotiate, landlords seldom pass an unspent tenant-side commission back to an unrepresented tenant as lower rent. More often the landlord’s own broker keeps the full commission while representing the landlord. The bigger cost of going alone is usually leverage: without priced alternatives from competing buildings, a landlord has little reason to move off its opening terms.
What Does Tenant Representation Cost in Each Type of Deal?
| Type of deal | Who pays the tenant rep | Cost to the tenant |
|---|---|---|
| New lease or relocation | The new landlord, at lease signing | $0 |
| Lease renewal | Your current landlord, at signing of the renewal | $0 |
| Expansion in your building | Your current landlord | $0 |
| Lease review and market benchmark | No charge for the initial review | $0 |
| Subleasing your space | Usually paid from the sublease proceeds | Disclosed up front, before you commit |
Reflects how Chicago-area office leases are typically structured in the transactions we track and negotiate as of October 2026.
What Does a Tenant Rep Get You for That Fee?
Market data, competition, and a negotiator who works only for you. In Chicago-area deals we negotiate, competitive tenants are achieving 1 to 2 months of free rent per year of lease term, or 5 to 10 months on a 5-year lease, plus landlord-funded improvements and flexibility rights such as expansion and termination options. Those concessions usually come from making several landlords compete for the same tenant, which is hard to do alone. See the benefits of office tenant representation for the full list.
Why Does It Matter Who Else Pays My Broker?
Because a broker whose firm also represents landlords may be negotiating against its own clients. Illinois allows one broker to represent both sides with written consent, and the state’s required disclosure calls that a conflict of interest. Read our guide to dual agency in Illinois. Tenant Advisors doesn’t list buildings, manage property, or represent landlords, so the landlord paying our fee buys the landlord nothing in return.
What Should I Ask a Broker About Fees Before Hiring Them?
- Who pays you, and will I ever receive an invoice?
- Does your firm represent any landlords, list buildings, or manage property?
- How are you paid if I renew instead of moving?
- Who at your firm will actually negotiate my lease?
More questions are in questions to ask a tenant rep broker before hiring one.
Frequently Asked Questions
How much does a tenant rep broker cost in Chicago?
Nothing out of pocket for office tenants. The landlord budgets a brokerage commission into the lease and pays it at signing, whether or not the tenant has its own representative.
Will I get a lower rent if I negotiate without a broker?
Rarely. In the transactions we track and negotiate, landlords seldom pass the unspent commission back to an unrepresented tenant. The landlord’s own broker typically keeps the full fee while representing the landlord.
Do I pay a tenant rep for a lease renewal?
No. Landlords pay brokerage commissions on renewals just as they do on new leases, so renewal representation costs the tenant nothing directly.
Who pays the commission when I sublease my office?
Sublease commissions are usually paid from the sublease proceeds. A good tenant rep lays out every cost, including commissions and any concessions to the subtenant, before you commit.
How is Tenant Advisors paid?
The landlord pays our fee as part of the lease transaction. Tenant Advisors has represented only office tenants since 2004 and never represents landlords, so there is no cost to tenants and no conflict of interest.
About the authors: Tom Koelzer and Dave Ven Horst co-founded Tenant Advisors in 2004 after years on the landlord side of commercial real estate. Tom has been in Chicago office leasing since 1986 and Dave since 1985, and the firm has negotiated more than 2,000 office leases. Questions about your lease? Contact us or call (847) 778-0296.