what is the standard commerical broker commission on a new lease.

In Leasing Property - Asked by Toni H. - Oct 11, 2011
Report Abuse
Answer this Question

Answer(s)

Daniel C. E.
Broker/Agent
Plano, TX

It really depends on the market and what the Owner or Listing Broker has agreed with the owner. There many factors involved. Term of the lease. Based on Percentage or based on SF to calculate the Commissions. EX. - if you have a 10 year deal the landlord may pay 4% the first 5 years and 2% on the next 5 years.

Oct 12, 2011
Report Abuse
Chris R.
Broker/Agent
Denton, TX

Understand of course that there is NO standard - each and every party to a transaction is free to negotiate commission structure for the particular deal at hand. In the Texas market - prevailing commercial lease transactions typically pay 4.5% of the lease amount to the broker rep for the tenant. Of course - that is based on the listing agent and the owner having negotiated that amount and then that amount being offered to tenant rep agents. This amount may vary from region to region, company to company, deal to deal.

Oct 12, 2011
Report Abuse
Lori M.
Providence, RI

There is no definitive commission. It is negotiable and varies by market. Commissions can be structured by the sf OR % of annual rents. Other variables are the credibility of the tenant and term. Negotiate the best commission for both parties and if at all possibble, build it into the lease term. Ask the question: What is it worth to lease this space and have XYZ Co. as a tenant.

Oct 13, 2011
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question