So, I have seen commercial agents and/or brokers receive commissions over the entire term of the lease agreement. For example, $500 per year for 20 year. I was hoping someone could elaborate on this payout structure. I mean is this typical because I was under impression total commission was due at signing of lease. Is this a specific commercial property type that this pay structue is done with? Any information would be appreciated. Thanks.
@Mike C. Terms for commercial lease commissions are negotiable. Most agents ask for the commissions to be paid up front. Most landlords want to spread the commission out over the term of the lease.
Last commercial lease I did was a 5 year lease. I got 5% of total lease in year one, then 4, 3, 2, 1 each subsequent year.