are tenant improvements, paid to the landlord monthly (amortized) included in commission calculations?

$12.00/sq ft base rent + $5/sq ft NNN + $7/sq ft (first 5-years) to amortize TI. Which figures are included in commission calculations for Broker?
In Leasing Property - Asked by James P. - May 1, 2017
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Answer(s)

Juanita A.
Broker/Agent
Hallandale, FL

Not usually, but all depends on the lease and commission agreements.

May 2, 2017
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Christian P.
Broker/Agent
Coral Springs, FL

Most likely not. The broker's fees will depend upon the listing/commision agreement, but fees are typically a % of the base rent or a % of the gross.

May 2, 2017
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Erik A.
Broker/Agent
San Diego, CA

I have never seen commissions paid on TIA (tenant improvement allowance) or even on the NNNs for that matter. I am sure you could ask for it to be different but it is usually on the gross base rent so that deal looks like $12 x the square footage x 60 months (less abated) also including any escalations in the base rental rate x whatever % you negotiated in commissions.

May 2, 2017
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Phillip H.
Broker/Agent
Nashville, TN

I agree with Eric, I have never seen commissions paid on TI either.
However, I have seen commissions paid on the NNNs for office leases. This makes sense to me, considering that these amounts are another form of income for the LL, and because these amounts are almost always classified as "Other Rent(s)" on the lease.

May 4, 2017
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