How are commissions paid to broker on a leased building? All up front or when we receive rent?

We are thinking about leasing our retail building. Are brokers paid up front for the duration of the lease or are they paid when we receive the rent?
In Leasing Property - Asked by Monterey Shore Holdings L. - Dec 15, 2012
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Answer(s)

Jason B.
Broker/Agent
Denver, CO

In the Denver Metro area tenant representation brokers are typically paid either 100% upon execution of the lease or 50% upon execution and 50% upon the tenant's occupancy.

Dec 17, 2012
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Dan Shimasaki C.
Broker/Agent
Ocala, FL

Jason's answer is correct...however, a lease commission may also be paid monthly as the rent is collected to build you a monthly income. If you are able to lease many spaces over a period of three years, it may be a nice income annually.

Dec 17, 2012
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Robert S.
Owner/Investor
Plymouth Meeting, PA

It also depends on the credit of the tenant. A national credit tenant would get paid a commission upfront, whereas a local tenant with no credit would be paid monthly.

Jan 1, 2013
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Michael E.
Broker/Agent
Houston, TX

It is negotiable with the broker, however, it is common practice to pay 1/2 the commission upon lease execution and 1/2 upon move-in.

Jan 2, 2013
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