Commercial lease - commission paid on base rent only?
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?
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