The Truth About Conflict in Commercial Real Estate

There are potential conflicts of interest inherent in real estate transactions between a commercial occupier and a prospective landlord, when the same real estate advisory company represents both parties.

An advisor should have only your interests in mind when negotiating terms and making decisions about your business, which is why Cresa only serves occupiers and never landlords.

The largest real estate brokerage firms, who are dual agency – serve both occupiers and landlords, receive approximately 50 percent to 90 percent of their revenue from investors and landlords.

Source: Financial data and information was taken from various publicly available sources including10-K submittals

This may compromise their ability to put occupier interests first in a lease negotiation or real estate planning situation.

Over the past couple of years conflict of interest has been highlighted in several publicized lawsuits around the country. There was even a study done on this issue by George Washington University.¹

Our advisors understand how influential the right business environment can be, and we work with our clients to develop spaces that enhance productivity, innovation and culture. By focusing on occupiers only, we can ensure that our clients’ needs are always put first, resulting in the best outcome for their business and their people.

Note: CoStar & Cresa, Data is for a trailing one-year period, collected in July 2023

^1. Smirniotopoulos, Peter (2014) “Conflicts of Interest in Commercial Real Estate Transactions: Who Represents the Tenant? The George Washington University, Center for Real Estate and Urban Analysis.