Calculate different rates for different portions of the deal value.
Typically 50% if co-brokered
Your cut of the gross commission
Total Deal Value:
Commercial real estate commissions often differ from residential. While a flat percentage (like 6%) is common for smaller deals or leases, larger deals often use a sliding scale (tiered rate).
Commercial real estate commissions work differently than residential ones. While residential agents typically split a fixed percentage of the sale price (e.g., 6%), commercial deals often involve complex tiers, finding fees, and lease calculations based on total rent value.
For leasing deals, commissions are usually calculated on the Total Lease Value (Base Rent × Term). Rates often follow a declining tier structure to incentivize larger deals for tenants while managing costs for landlords.
Commercial sales commissions fluctuate based on asset class and price point. Large institutional deals ($50M+) might command lower percentages (0.5% - 1.5%), while smaller "mom-and-pop" deals ($1M - $5M) often stay near the residential standard of 4-6%.
Similar to residential, the Landlord (Lessor) or Seller typically pays the full commission, which is then split between the Listing Broker and the Tenant Rep/Buyer Broker. A common split is 50/50, but "skews" (e.g., listing agent keeps more) occur in tight markets.
On leases, commissions are often paid in two halves: 50% upon lease execution and 50% upon tenant occupancy or rent commencement. On sales, the full fee is typically paid at closing.
This is the chain of events that leads to a successful transaction. In commercial real estate, proving you are the procuring cause is essential to getting paid, especially if a tenant tours with multiple brokers.
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