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General Landlording & Rental Properties

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Christine Le
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Commercial lease - commission paid on base rent only?

Christine Le
Posted Mar 27 2024, 15:09

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?

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Brock Mogensen
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  • Real Estate Syndicator
  • Milwaukee, WI
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Brock Mogensen
Pro Member
  • Real Estate Syndicator
  • Milwaukee, WI
Replied Mar 28 2024, 06:35

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