Founders—Don’t Negotiate Your Office Lease Alone (Brokers are free for you)

If you're thinking about leasing office space—or renewing your lease—here’s something you need to know: Hiring a commercial real estate broker is free for you.

That’s right. Just like in residential real estate, where the seller covers the agent’s commission, in commercial leasing, the landlord pays the broker’s fee—for both sides (usually 3-6%).

Many founders assume they can save money by negotiating their lease themselves. But here’s why that thinking is flawed:

1️⃣ You’re not actually saving money. Since having a broker is the norm landlords already budgets for broker fees , going solo doesn’t mean a discount—it just means the landlord keeps more margin.

2️⃣ You’ll likely get a worse deal. Industry veterans estimate brokers can negotiate lease terms 10-20% better (no hard data on this yet*) than founders negotiating alone—meaning lower rent, better concessions, and fewer surprises down the road. We’ll be able to prove this once we collect enough data, but anecdotally, it’s clear brokers add serious value.

3️⃣ You’ll waste time you don’t have. Don’t try to figure out what Triple Net (NNN) leases, tenant improvement allowances, and operating expense pass-throughs mean on your own - have a broker help you (or use JIGO). Negotiating a lease is complex and time-consuming. Every hour spent on it is an hour you’re not building your company.

Timing Matters: Talk to a Broker before you talk to land lords

One more critical mistake founders make? Reaching out to landlords before engaging a broker.

The moment you show interest in a space, the landlord starts formulating their negotiation strategy. If you bring in a broker late in the game, they’ll likely say:

"Oh, my offer was based on not having to pay your broker’s commission. Now, I have to increase it."

Though it would depend on the market that anchoring makes it way harder for your broker to negotiate the best terms for you. The best time to engage a broker is (1)when you are pretty sure you need to lease space and especially (2) before you contact landlords.

So, before you dial that "office for lease" number, talk to a reputable broker in your area.

If you’re considering a move or a renewal, I’d strongly recommend finding a good broker before you take the first step. You’ll get expert guidance, better terms, and—best of all—it won’t cost you a dime.

If you need recommendations on founder friendly Office Brokers - reach out to us.