Many organisations start their search with a local real estate broker. That feels logical. You request a certain number of square metres and receive a selection of available buildings. In international processes, this approach is often supported by headquarters or international networks. This is often where the first pitfall arises.
THE LOCAL BROKER
Every real estate market has its own dynamics. What is often underestimated is that the role of the broker also differs by country. This also affects the level of independence.
In the Netherlands, the playing field is relatively transparent. Landlords work with leasing agents. Tenants can engage tenant representation advisors. In practice, many brokers primarily work for landlords. They advise on leasing, investments, valuations and asset management. This makes them strong market experts, but their commercial foundation usually lies with the property owner. For a tenant making strategic decisions, this requires awareness.
Parella deliberately chooses to advise tenants and end users only. We do not accept assignments from landlords or investors. This choice makes our position clear.
GERMANY
In Germany, the broker is generally paid by the landlord. The fee often equals three to four months of rent, depending on the lease term. The landlord typically conducts the negotiations for office leases, while the broker mainly acts as an intermediary.
Many German brokers state they can offer access to the entire market. Since they rarely have exclusive listings, this may seem credible. In practice, however, this means information about availability, options and conditions always runs through the landlord. Brokers do not automatically have full insight into the real time status of every building.
For international tenants, the risks often lie in the details. Service charges, maintenance obligations and limited flexibility are rarely addressed proactively. They often only surface once lease negotiations are already at an advanced stage.
When multiple brokers are approached to obtain a complete market overview, another issue can arise. The same buildings may appear through different channels on your shortlist. Objective comparison becomes more difficult. Each party tends to defend its own proposal.
FRANCE
In France, brokers are often paid by both the tenant and the landlord. This makes their position more complex. The broker frequently acts as an intermediary between both parties but rarely takes on a clearly defined strategic advisory role.
French lease agreements are often long term and legally detailed. What is considered standard practice locally may have major implications for an international organisation. For example, limited termination options or obligations that do not align with your growth strategy.
Without independent direction, the translation to your organisation’s strategic interests is often insufficient. Terms may be accepted because they are considered market standard, while their strategic impact remains underexposed.
UNITED STATES
In the United States, the broker is also typically paid by the landlord. The market is large, competitive and relatively transparent. In many cities, specialised advisors focus entirely on tenant representation.
The negotiation culture is more developed here. Incentives, rent free periods and flexibility are standard parts of the discussion. At the same time, lease agreements are legally precise. Without your own advisor, tenants can face substantial risks. Professional standards are high, but this does not remove the need to explicitly safeguard your own interests.
INTERNATIONAL OFFICE REAL ESTATE REQUIRES CENTRAL COORDINATION
What these markets have in common is that the party showing you properties is not automatically your strategic advisor. Information is quickly mistaken for advice.
International brokerage organisations often present their global networks as the solution for international expansion. From their perspective this is understandable. They rely on their local teams and have little incentive to involve external parties.
As a tenant, your needs lie elsewhere. You need consistency. Comparability between countries. Insight into risks and flexibility across your entire portfolio. This requires one central advisor who safeguards your international interests while effectively leveraging local expertise.
An independent tenant advisor asks questions that are less obvious in a purely local context. How do service charges compare to international benchmarks. Which exit options are realistic. How do local customs affect your negotiating position. This level of scrutiny leads to better decision making.
WHAT IS THE WISE APPROACH
What is the wise approach when expanding internationally?
Start with clarity about roles and compensation structures. Ask upfront who pays which party and what responsibilities come with that. Transparency about fee structures provides insight into where interests may align or diverge.
Also ensure all lease conditions are structured in a uniform way. Compare rent levels, incentives, service charges and flexibility using the same methodology in each country so you can make well informed decisions.
Use local market knowledge, but keep overall control centrally organised with one party that oversees your total strategy.
Finally, consider engaging an advisor who exclusively represents tenants in international office real estate. A party without ties to landlords can operate more independently in negotiations and focus more directly on risk, cost and flexibility.
INTERNATIONAL EXPANSION WITHOUT NOISE
Opening an office abroad is a strategic decision with long term financial impact. It requires market insight, coordination, consistency and independence.
Organisations that understand local market practices while safeguarding their international interests maintain control over costs, flexibility and future readiness.
If you want to understand how to approach international office real estate in a structured way and fully aligned with tenant interests, the process starts with the right advisor at your side. Parella supports organisations worldwide based on one principle: your interests come first.
Want to learn more about international office real estate? Read more about our process here.