What is a commercial real estate broker and what do they do?
A commercial real estate broker arranges leases and sales of property used by businesses, such as offices, warehouses, shops and land, acting for a landlord, tenant, seller or buyer and usually paid by commission. Most specialise by property type and by side (landlord leasing, tenant representation, investment sales or debt), and their main tasks are finding clients, pricing space, marketing it, negotiating terms and managing the deal to completion. Scayled is software brokers use for the finding: it lists the businesses around a property and across the market that fit, names who decides at each, and tracks them for signs they will need space.
- What are the main roles a commercial broker can play?
- How are commercial brokers paid?
- Do commercial brokers need a licence?
- How do commercial brokers find clients?
- What tools do commercial brokers use?
What are the main roles a commercial broker can play?
Landlord representation: hired by an owner to lease space, the broker markets the property, finds and qualifies tenants and negotiates leases. Tenant representation: hired by a business to find space, the broker defines the requirement, searches the market and negotiates. Investment sales: the broker sells buildings for owners or finds them for buyers. Debt and equity advisory: the broker arranges financing.
Many brokers combine roles, but acting for both sides of one deal creates conflicts that most markets regulate through disclosure and consent. For prospecting across these roles, see what CRE prospecting software should do.
How are commercial brokers paid?
Mostly by commission on completed deals. Lease commissions are usually calculated from the value of the lease, often paid by the landlord and shared with the tenant's broker. Sale commissions are a percentage of the price, typically lower in percentage terms on larger deals. Rates and structures vary by market, property type and deal size and are set in the listing or representation agreement.
Brokers at firms usually split commissions with their firm. Income is uneven: deals take months, and many brokers earn little in their first year or two while they build a client base.
Do commercial brokers need a licence?
In most US states, Australian states, New Zealand and Canadian provinces, yes. US states license salespersons and brokers separately, and a salesperson must work under a licensed broker. In Australia, each state or territory licenses agents; New Zealand licenses agents under the Real Estate Agents Act 2008.
The UK has no licensing requirement for commercial agents, though they are subject to the Estate Agents Act 1979 and anti-money-laundering rules, and many are RICS members. In Dubai, brokers register with the emirate's real estate regulator, RERA. Check the regulator in your market for current requirements.
How do commercial brokers find clients?
Through relationships, referrals and prospecting. Landlord-side brokers pitch owners for listings, then market them on portals such as LoopNet, Crexi, realcommercial.com.au or Rightmove Commercial, and approach businesses that might lease. Tenant-side brokers approach companies before their lease events. Investment brokers build a book of owners and buyers.
The hard part is knowing which businesses will need space and who decides. That is the domain of occupier intelligence: knowledge about the businesses that use space, not just the buildings. For an industrial example, see how to get industrial real estate leads.
What tools do commercial brokers use?
A property data source such as CoStar, Cotality or local equivalents for comps and availabilities; listing portals for marketing; a CRM such as Buildout, ClientLook, AscendixRE or Salesforce; contact databases such as ZoomInfo or Apollo; and document and financial modelling tools.
Scayled adds the occupier layer. Around a property it lists every business nearby with the person who decides on space; across the market, a Target Scan finds businesses whose size, use and property type fit. Each business is tracked for signs it will need space, and outreach is drafted per business and sent from the broker's own inbox. The 3-day free trial at /start includes 4 scans.
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