What's a Typical Commercial Lease Commission? Rates and What Drives Them

Ask ten brokers what a typical commercial lease commission is and you'll hear ten answers, because the rate moves with the market, the asset class, the deal size, the term and which side you represent. There is still a usual range, and this guide starts with it, then explains how the rate is structured and what pushes it up or down.

In short: commercial lease commissions are commonly 4% to 6% of the total lease value, paid by the landlord (Partners Real Estate). A frequently quoted split is 6% in total, with 4% to the tenant's broker and 2% to the landlord's broker (Aquila Commercial, updated January 2026). Wider published ranges run from 3% to 6%, with higher rates on shorter or smaller deals (Wikipedia).

Typical commercial lease commission rates

WhatTypical figureSource
Total commission, new lease4% to 6% of total lease valuePartners Real Estate
Split on a co-brokered lease4% to the tenant rep, 2% to the landlord rep (6% total)Aquila Commercial
Who paysUsually the landlordPartners Real Estate
When it's paidOften half at lease signing, half at move-inPartners Real Estate
RenewalOften reduced: half or no commission, or about 1% to 3%The Real Deal, Wikipedia

Treat these as a starting point, not a rule. Local practice, the landlord's own commission schedule and what you negotiate decide the real number.

How commission rates are structured

Commercial leasing commissions aren't quoted as one flat fee the way a home sale often is. The structure changes how you calculate your fee.

  • Percentage of total lease value. A percentage of the aggregate base rent over the full term (Wikipedia). This is the most common structure. Total lease value is rentable square feet times annual rent per square foot times the term in years.
  • Per square foot. A dollar amount per square foot of leased area, sometimes multiplied by the term in years. Wikipedia notes it is used in some markets, especially for industrial and large-format retail (Wikipedia).
  • Sliding or declining scale. A higher percentage in the early years and a lower one later. A typical example is 6% for years one through five and 3% for years six through ten (Wikipedia).
  • Flat or negotiated fee. A fixed amount agreed for a specific deal.

Landlords often publish their own schedule. One landlord schedule posted on LoopNet pays 4% for one- and two-year terms, 3.5% for three years and 3% for four or five years, caps the commission at a five-year base period, pays nothing on renewals or extensions, and pays half on execution and half on occupancy (landlord commission schedule on LoopNet). Always work from the schedule or commission agreement on your deal.

A worked example

A 10,000 square foot office lease at $32 per square foot per year for seven years has a total lease value of $2,240,000. At 6% the total commission is $134,400. On a co-brokered deal split 4% and 2%, the tenant's broker side earns $89,600 and the landlord's broker side earns $44,800, before any split with each broker's firm.

To run your own deal, including declining rates and escalations, use the commercial lease commission calculator. The method behind it is in the guide on how to calculate a commercial leasing commission.

The levers that move the number

Deal size and term

Higher rates tend to apply to shorter leases and smaller deals (Wikipedia). On big transactions the dollars are large enough that landlords negotiate the percentage down. Longer terms raise the total lease value, so the commission grows even at the same rate, and they are where sliding scales show up.

Asset class and market

Office, industrial, retail and medical office each have their own conventions, and so do individual markets. Per-square-foot fees, for instance, are more common in some markets and property types than others.

Which side you represent

On a co-brokered lease, the total commission is divided between the tenant's broker and the landlord's broker. In the common 6% example, the tenant rep takes the larger share (Aquila Commercial). How the co-broke is written decides your share, as covered in the guide on co-broker commission splits.

New lease or renewal

Renewals usually pay less than new leases. Historically, landlords paid half a commission or none on renewals, although some always pay full commissions (The Real Deal). The details are in the guide on commission on lease renewals.

Putting it together

FactorTypical effect on your commission
Larger deal sizeOften a lower percentage, but more dollars
Shorter lease or smaller dealOften a higher percentage
Longer termLarger total value, often a sliding scale
Side representedTenant rep and landlord rep shares differ on co-broked deals
Renewal instead of new leaseOften reduced, sometimes nothing

Frequently asked questions

What is the standard commission for a commercial lease?

Commonly 4% to 6% of the total lease value, usually paid by the landlord (Partners Real Estate). The actual rate is set by the landlord's schedule or the commission agreement.

How is a commercial lease commission split between brokers?

A commonly quoted structure is 6% in total, with 4% to the tenant's broker and 2% to the landlord's broker (Aquila Commercial). Each broker then splits their side with their own firm.

Is 3% a good commission on a commercial lease?

It sits at the low end of the published 3% to 6% range (Wikipedia). It is common on later years of a sliding scale, on large deals and on renewals.

What does $18.00 SF/yr mean?

It is the rent: $18 per square foot per year. A 5,000 square foot space at $18.00 SF/yr costs $90,000 a year in base rent, and that annual rent times the term is the total lease value a percentage commission applies to. See price per square foot and base rent.

Who pays the commission on a commercial lease?

Usually the landlord, including the tenant broker's share. Tenants rarely pay a leasing commission directly (Partners Real Estate).

Related guides

This guide is general information for commercial real estate brokers and is not financial, tax, or legal advice. Rates and structures vary by deal and market. Sources were checked on 1 October 2026. Confirm specifics with your brokerage.