A 10,000 SF warehouse lease in the San Fernando Valley typically carries about $200,000 a year in occupancy cost — roughly a million dollars over a five-year term — across a 40-70 page lease document with dozens of negotiable terms. That’s a meaningful enough decision that it’s worth understanding how industrial real estate representation actually works before you start touring buildings.
Three structures cover most SFV industrial deals: tenant representation, landlord representation, and dual agency. Each is a legitimate option in California with appropriate written disclosure. The right one depends on the deal, the parties involved, and what each side is trying to accomplish.
The Three Roles
Tenant representation. A broker representing the tenant — defining requirements, identifying buildings, evaluating sites, and negotiating lease terms on the tenant’s behalf.
Landlord (listing) representation. A broker representing the property owner — marketing the space, qualifying prospects, and negotiating terms on the landlord’s behalf.
Dual agency. One broker (or one brokerage) representing both sides of the same transaction — acting as a neutral facilitator rather than an advocate for either side.
A reputable broker will tell you up front which role they’re playing on your specific deal and put it in writing.
How Commissions Work
Commercial lease commissions in the SFV are typically 5-6% of total lease value, paid by the landlord and built into the deal economics. In a two-broker transaction, the commission is split between the listing broker and the tenant rep. In a dual-agency transaction, the single broker (or brokerage) earns the full commission. In all three cases, the landlord pays — the commission isn’t an additional out-of-pocket cost to the tenant.
That structure matters for one practical reason: a tenant deciding whether to engage their own representation isn’t choosing between “free” and “paid” — they’re choosing between having an advocate on their side of the deal or interacting directly with the listing broker (or, in dual agency, with a neutral broker representing both parties).
A few edge cases sit outside this default — short-term leases, sublets, some owner-user purchases. A reputable broker discloses any non-standard commission arrangement in writing before any work begins.
Choosing the Right Structure
For most tenants, engaging tenant representation is a straightforward choice: someone is focused on your side of the deal, walking the market, and managing the process from search through move-in. It’s a particularly natural fit when you’re new to the SFV, evaluating multiple submarkets, or have unusual technical requirements.
Landlord representation makes sense when an owner needs marketing, leasing, and tenant qualification handled — and many tenants encounter listing brokers for the first time when they call about a building they’ve seen on a sign or a listing site.
Dual agency works well when a brokerage already represents both parties (for example, a longtime tenant client and an existing landlord client whose buildings genuinely fit). Both sides sign a disclosure, and the broker’s role becomes facilitator rather than advocate. Done with full transparency, it can shorten the path to a deal that suits both parties — but it’s a structure where written disclosure is non-negotiable, and either party can decline.
“We represent tenants, we represent landlords, and on the right deal we’ll act as the dual agent — always with written disclosure and informed consent on both sides,” says Art Minassian, Senior Vice President at Available Warehouses. “What matters is that the structure fits the situation and everyone knows the role we’re playing.”
When to Start the Conversation
Whether you’re leaning toward tenant rep, expecting to deal with the listing broker directly, or open to dual agency, the timing is the same: start about 9-12 months before a current lease expires. That window allows for proper requirements scoping, a thorough search, and a negotiation that isn’t compressed by an artificial deadline. Tenants who start with 60-90 days left have less room to negotiate, regardless of structure.
A Few Practical Notes
- Get the engagement in writing. Whatever structure you’re in — tenant rep, landlord rep, or dual agency — scope, term, and any disclosure should be explicit and signed by both parties.
- Pick a specialist. SFV industrial has technical depth (clear heights, dock counts, power, zoning, truck-court geometry) that generalist commercial brokers don’t always carry.
- Ask about market access. Whether you’re buying, leasing, or listing, a broker’s value comes partly from who they know and what they can show you that isn’t on a listing platform.
- Understand the disclosure before you sign. California’s dual-agency disclosure form lays out what each party is consenting to. Take the time to read it and ask questions.
About This Article
This article was compiled by the team at Available Warehouses, a specialist industrial real estate brokerage serving the San Fernando Valley, greater Los Angeles, and Southern California. Our team has closed over $600 million in industrial real estate transactions and represents tenants, landlords, and dual-agency engagements across all SFV submarkets — always with written disclosure of our role on each deal.
Looking for industrial space in the San Fernando Valley — or for someone to help lease your building? Contact us for a no-obligation conversation, or call 818-939-4940.
This article is for informational purposes only and does not constitute legal, financial, or investment advice. Market data referenced is sourced from publicly available brokerage research published Q3 2025-Q1 2026; conditions are subject to change.
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