ICOnic News | Understanding Tenant Representation In Today's Commercial Real Estate Market
UNDERSTANDING TENANT REPRESENTATION IN TODAY'S COMMERCIAL REAL ESTATE MARKET
Navigating commercial real estate can be complex, especially in markets where conditions vary widely by property type and location. For example, Houston office vacancy remains elevated while industrial space stays relatively tight, creating very different negotiating environments depending on where and what you're leasing. This is where tenant representation plays an important role.
Tenant representation is a service designed to help businesses evaluate space options, understand lease terms, and make informed real estate decisions. While many people think lease negotiations are only about rental rates, the true cost of occupancy is influenced by several additional factors. These include tenant improvement allowances, rent abatements, operating expense caps, renewal options, and flexibility for future growth. Each of these items can significantly affect a company's financial commitment over the life of a lease.
Timing is another critical part of the process that is often overlooked. Beginning the site selection or renewal process nine to twelve months before a lease expires gives tenants more leverage, more choices, and stronger negotiating power. Waiting too long can limit available options and lead to rushed decisions that may not align with long-term business goals.
Tenant representation also extends beyond signing documents. It often includes reviewing existing leases, managing landlord relationships, evaluating future space needs, and aligning real estate decisions with a company's growth strategy. The overall objective is to help businesses reduce risk, control occupancy costs, and ensure their real estate supports operational success not just today, but well into the future.
Firms like ICO Commercial provide this guidance by combining market data, landlord insight, and strategic planning to help tenants better understand their options and move forward with confidence.
- Christa Therkildsen, ICO Associate
ICO STRATEGY SESSIONS
This year ICO is introducing our new Broker Brainstorm Lunch where ideas turn into action and action turn into wins. These working lunches are designed to foster collaboration, allowing brokers to work with greater purpose, generate more impact, and add value to their businesses. Each session centers on meaningful discussions that will help to refine strategies and enhance deal-making skills. The goal of each of these initiatives is focused on enhancing broker productivity and positioning our team to win more opportunities.
GETTING TO KNOW LARRY INDERMUEHLE
1. Where's the most interesting place you've traveled to?
"My wife and I took a river tour through Germany. I loved how quiet and smooth the riverboat was. We visited 6-8 cities, including historic sites like Hitler's marching grounds, and ended our trip in Prague. Being in a different city each day was unforgettable."
2. What inspired you to pursue a career in commercial real estate?
"It was a God thing. I never planned on it, but the opportunity just appeared, and I knew this was the path I was meant to take."
3. What advice would you give someone entering commercial real estate today?
"Think carefully and make sure you're committed because it's a tough road at first. But once I got past the startup phase, it became the most satisfying career of my life. There were ups and downs, but I never dreaded coming to work."
4. How would you summarize your business?
"I enjoy utilizing the 45+ years of experience I have to assist clients with their real estate needs and working on long-term planning to maximize the client's CRE investments."
If you missed our January ICOnic News, we broke down what's driving the Houston industrial market in 2026 and reflected on major milestones from 2025, including team growth and strategic highlights from ICO Commercial.
Click the link below to read our January newsletter.
