Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Brokerage Commissions

By David P. Resnick
October 14, 2016

When negotiating the terms of a new relationship with a leasing broker, an owner of a multi-tenant commercial property or a tenant seeking to sublease its space may be presented with a written brokerage agreement that is lengthy and complex. The amount of commission payable and the time and manner of that payment can be difficult to discern from boilerplate provisions.

A Brief Overview

Leasing commissions often present a unique and confusing line item in a property budget. Though they are a capital expense and impact the cash flow of the property, commissions are generally not accounted for in net operating income and are not passed through to tenants as part of operating expenses. Like many other transactional expenses, commissions vary greatly between markets and industry sectors. A commission structure that is appropriate for an office property in New York might be wholly inappropriate in Chicago. Notwithstanding the market, sector or qualities specific to the property, a prudent owner will seek discounted commissions for simpler leasing transactions due simply to the fact that they require less time and fewer resources.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Legal Possession: What Does It Mean? Image

Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.

The Anti-Assignment Override Provisions Image

UCC Sections 9406(d) and 9408(a) are one of the most powerful, yet least understood, sections of the Uniform Commercial Code. On their face, they appear to override anti-assignment provisions in agreements that would limit the grant of a security interest. But do these sections really work?