Can you include commercial tenant's agent commission on LOI to be sure of payment by landlord, or is there

other ways besides the lease agreement
In Leasing Property - Asked by Rose M. - Aug 15, 2014
Report Abuse
Answer this Question


Icela A W.
San Diego, CA

Absolutely, as you describe the Agency (Tenant Representation) you can include your commission percentage or amount and the terms for payment (upon lease execution)

Aug 15, 2014
Report Abuse
Benny George B.
Phoenix, AZ

LOI is not binding, so you can do it but i don't know if it helps.You should have something between you and your client, all commercial brokers should have that form, plus , first, you should ask landlord if they co-broke. I think you look cheap(residential agent wanting to do commercial transactions) if you mention it on the LOI.
Just a thought .

Aug 18, 2014
Report Abuse
Kenneth J. J.
Toms River, NJ

Just one thing to add to the previous answers. If you don't have a written employment or commission agreement with your principle, you'll have a VERY difficult time getting paid if the principles decide not to pay you. If it's not in writing, it simply doesn't exist in the eyes of contract law.

Aug 22, 2014
Report Abuse
Alex K.
Belmont, CA

Yes, I usually do. Plus, confirm it on email.

Aug 28, 2014
Report Abuse
Randolph G.
Boca Raton, FL

Remember, the tenant's agent looks to the landlord's broker to share in the fee. There should be a separate (binding) co-broker agreement between the two brokerages. I always state the agency relationship in the LOI, and that tenant's broker shall be paid by landlord (or landlord's agent) per separate agreement.
Most importantly, develop a good relationship with all parties, especially the payor (building owner). Owners who see me as a friendly ongoing source of future tenants, gladly pay without an agreement at all!

Oct 10, 2014
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