What Does A
Commercial Real Estate Broker Do?


What does a
Commercial Real Estate Broker do?

A commercial real estate broker acts as a go-between for landlords and renters. Brokers' duties and priorities alter depending on which side of the transaction they're on. While they're constantly striving to obtain the greatest results for their customers, their roles and priorities change based on which side of the transaction they're on.

When a commercial real estate broker is assisting a landlord in leasing their property, the emphasis is on promoting the space, locating tenants, and obtaining the best terms possible. The goal of brokers working on behalf of renters is to find the perfect location to assist the client's company development.

Businesses of all sizes will almost certainly need to engage with a commercial real estate broker at some time, so it's important to know what a commercial real estate broker does. We'll look at the many sorts of commercial real estate brokers, how they're compensated, and how their duties might vary in this post, which is part of our commercial real estate series.

Commercial real estate agents come in a variety of shapes and sizes.

Those who work for landlords are known as brokers.

These brokers represent landlords and seek to obtain their clients the best available bargains. A landlord with available space will advertise their property with a broker, referred to as a "listing broker," who will then seek to locate eligible renters.

Following the signing of a lease, these brokers often get a fee from the landlord of 3 to 6 percent of the rent paid during the lease's length. If the incoming renter uses their own broker, which is common, the landlord will compensate both parties, with the "listing broker" receiving around half of what the tenant's representative gets.

Tenant brokers are those who work for the tenants.

A "tenant rep" is a broker that works in the tenant's best interests to obtain the greatest price on a business space that meets the client's demands. Because their commission isn't connected to any one listed property, the tenant representative can provide more impartial recommendations while looking for office or retail space. A tenant-only broker can also assist in navigating some of the more difficult parts of negotiating a lease while avoiding hidden terms, fees, and other possible problems.

The landlord usually pays the tenant representative a market commission once the lease is signed.

Brokers that represent both landlords and renters are known as "landlord-tenant brokers."

In low-supply areas and even certain gateway markets, commercial real estate brokers often serve as both a tenant representative and a listing broker, depending on the situation. They function as a middleman between renters and landlords, assisting them in the search for and leasing of commercial real estate while staying legally obligated to get the best possible result for their client in any particular transaction.

If the renter's broker is also advertising one or more homes that the tenant is interested in, this might create a conflict of interest. Any such issues, however, may be notified and resolved before signing a contract with the broker.

Dual Agents

In certain circumstances, a single broker may represent both the landlord and the renter in the same transaction. The lease procedure is streamlined since there is no back-and-forth between competing brokers, but it may also be a legal minefield. Dual agents share their loyalties between both sides of the negotiation table, since real estate agents are obligated by law to be loyal to a single client. Conflicts of interest are inherent, and as a result, several jurisdictions have made the practice illegal. This transaction structure may occur as long as both parties agree to dual agency and it is properly recorded in places where it is not limited.

If you come across this sort of broker, be aware that their position is less hands-on than that of a specialized broker, and that they are generally just responsible for the more technical elements of the procedure. They will try to keep a neutral stance and will not advocate for any side.

Brokerage Obligations

So, what exactly is the role of a commercial real estate broker? It depends on where they work in the office and who their customer is. Commercial real estate brokers are professionals in their area who guide customers through the complicated process of purchasing, selling, or leasing a commercial property, from finding office space to paying attention to the smallest details. A commercial real estate broker's key tasks are listed below.


These brokers assist customers in locating and purchasing commercial real estate. They help the buyer at every stage of the transaction, from scanning several listing platforms and harnessing market information to locate suitable properties, identifying investment risks, and negotiating the best possible selling price and conditions for their client.


A dispositions commercial real estate broker assists customers in selling their commercial property. They calculate the best asking price for the property based on market analysis and detailed research, and handle talks with possible purchasers. Other elements of the sale will be handled by these brokers, such as organizing walk-throughs and promoting the property.

Leasing Transactions

Landlords and renters wanting to lease or sublet office and retail space work with commercial real estate brokers. These brokers help their customers negotiate advantageous lease arrangements and establish rent and other costs based on market research. Their responsibilities also include locating high-quality renters and, when working on behalf of a tenant, locating the greatest bargains on spaces that match the tenant's unique requirements.

Choosing the right Broker

While considering the above, it is important to note that familiarity, with both sides of the transaction as well as the subtleties of the market, are vital characteristic when selecting the firm that will represent you. Pillar Real Estate Advisors, a full-service brokerage firm based in the suburban Philadelphia PA market area, suggest asking prospective firms if they have experience representing Landlords as well as Tenants?...... Buyers as well as Sellers? What transactions, like the one you are asking them to represent you in, have then done in the market you are you wish to explore? This crossover knowledge is indispensable when you get into the nuances of a deal and need to understand what is motivating the other party.

Click Here to View All Available Properties