Rethinking the Landlord–Tenant Dynamic in Commercial Real Estate

Landlord and tenant negotiation in commercial real estate is often framed like a zero-sum game: if one side “wins,” the other must lose. But this mindset is rooted in outdated assumptions about what it means to be a tenant, assumptions that trace back centuries.

From Feudal Roots to Modern Real Estate

Many of the real estate ownership concepts we still use today evolved from medieval England, where landlords were aristocrats who controlled vast tracts of land. In that system, owning land meant power. People aspired to be lords; no one aspired to be a tenant.

While society has long moved beyond feudalism, the perception of being a tenant as “less than” continues to influence how people think about ownership and leasing today. Even the term landlord carries echoes of hierarchy that no longer fit modern commercial relationships.

The Modern CRE Dynamic Has Shifted

In today’s commercial real estate market, the balance of power looks very different.
Landlords may own the land, but tenants with strong operations control the cash flow. Some of the most successful global companies—Amazon, Apple, Starbucks—lease instead of own.

Ownership isn’t inherently superior; it’s simply one approach. Leasing often provides flexibility, capital efficiency, and the freedom to adapt to changing market conditions.

When Rent Isn’t the Problem

If a business can’t support market rent, the issue usually isn’t the rent.
Struggling operators often blame “greedy landlords,” but more often the root cause lies elsewhere: failing to keep up with competition, ignoring market shifts, or lacking innovation.

Solid businesses justify rent through strong performance. The best landlord–tenant relationships emerge when both parties understand their interdependence and align for long-term value.

A Relationship of Equals

In commercial real estate, landlord and tenant, for the most part, are equals: one provides the facility, the other provides the stability. They need each other.

Being a tenant shouldn’t be seen as second-class. And it certainly shouldn’t be the main driver behind owning real estate. The goal isn’t to “win” a lease negotiation. It’s to create alignment where both sides grow and sustain value together.