Commercial lease - commission paid on base rent only?

Question

I was told that on a NNN lease, brokers should take a commission of X% of base rent (price per SF x SF) - not total rent (which includes NNN). That makes sense to me as NNN is just expenses that are passed onto the tenant. True?

Brock Mogensen · Answer

Correct. Broker commissions are generally calculated based on the base rent.

Ex: $12,000/yr in base rent x 5 year lease = $60,000 -- $60,000 x 5% commission

Jameson Sullivan · Answer

What @Brock Mogensen said. :)

Commercial lease - commission paid on base rent only?

2 Replies