Listing Commission - Commercial Lease

What is the listing commission for a Commercial Lease?

For commercial leases is customary a commission that varies from 5% to 10% of the gross annual rent and extended for the term of the lease. Typically, that commission is paid by the landlord and may vary based on the type of agreement between the brokerage company and the landlord.

There are other types of commission calculations not as common as the one above, for example Per Square Foot commission, sometimes used in the retail area.

Lease commission varies from type of property to be leased and listing policies implemented by each Real Estate company. Most of the times, this commission is paid by the seller at the time of the closing. However, In some cases and depending on the value of the property and marketing plan, some Real Estate companies require an advance of the projected commission to pay for expenses involved in the marketing and offering of the property.

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