Most owners of commercial real estate hire real estate agents to sell or lease their property on their behalf. The real estate agent їs responsibility is to represent the owner in the sale or lease of the property; not to represent the tenant.

CRE agents receive a commission upon the signing of the sale or lease between the owner and a buyer or tenant. The amount of the commission of most often calculated as a percentage of the sale or lease value, which usually ranges between four and six percent.

For instance, if a tenant signs a 3-year lease for a 2,000-square-foot building at $18.00 per square foot, a 4% commission to the real estate agent would amount to $4,320.00 (3 years x 2,000 sq. ft. x $18.00 x 4%). The owner of the leased building pays the agent commission; typically one-half on the signing of the lease and the remaining one-half when the tenant begins occupying the building.

For instance, if a tenant buys a 2,000-square-foot building at $1800.00 per square foot, a 4% commission to the real estate agent would amount to $144,000.00 (2,000 sq. ft. x $1800.00 x 0.04). The owner of the sold building pays the agent commission; typically in full at the close of the sale of the building.

The sale or leasing agent has the listing of the property and represents the interest of the owner of the building.

A buyer or tenant representative (rep) represents the interest of the buyer or tenant in the lease.

Some agents work exclusively on listing while others take on buyer or tenant representation only. Other agents will work with both.

Ross Realty works exclusively as a listing agent with property owners looking to sell or lease their property,

A knowledgeable broker, who is a vital part of your team of professionals, uses comprehensive marketing expertise and valuable resources to ensure maximum results in every commercial property sale or lease transaction.

The use of an experienced brokerage firm will complement the rest of the team allowing others to do what they do best in their profession.

Sellers and landlords almost always use a broker to represent themselves in a sale or lease negotiation. The broker’s fee is paid by the seller or landlord anyway so a lessor should certainly get the benefit.

Appraisals in commercial real estate can be much more complicated than appraisals on residential properties. It’s essential that you learn what to ask for and also what to provide the appraiser. Here are “10 Things to Know About Commercial Real Estate Appraisal,” from Inc Magazine.

Look for training that goes beyond a basic real estate license. NAR (National Association of Realtors) offers the CCIM designation (Certified Commercial Investment Member) to train commercial real estate owners, investors, and users in interest-based negotiation, ethics, market analysis, financial analysis and more. REALTORS® earning CCIM are recognized experts in commercial real estate.