PG Commercial Real Estate – Commercial Realtor Montgomery County, PA and Greater Philadelphia Region

How are CRE professionals paid for their services?

How are CRE professionals paid for their services?

Whether it is a sale/equity transaction, or a lease between owner and tenant, CRE agents receive a commission at settlement, or upon the signing of the lease.  The amount of commission is often calculated as a percentage of the lease, or sale value, which often ranges from four to six percent, more or less. For example if a tenant signs a lease for a 2,000 square foot office at $21 per square foot, a 4% commission to the real estate agent would amount to $5,040.00 (3 years X 2,000 SF x $21 x 4%). The owner of the leased building pays the agent’s commission: typically one –half on the signing of the lease and the remaining one half when the tenant begins occupying the building. In many lease, transactions there are two CRE firms involved, both could represent the owner of the building (sub agent and agent), or one could represent the Tenant or Buyer, while the other represents the Owner.

Posted in: Commercial Real Estate

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