Commercial real estate brokers are paid via a commission agreement: a written and executed agreement between the landlord and the broker whereby the landlord agrees to pay the broker a commission if the broker is the “procuring cause” of the lease. In other words, the broker is responsible for bringing the tenant to the landlord. How much are brokers paid on my lease? It varies by market, but the total commission paid to brokers is almost always calculated as a percentage of your total rent payment. A good rule of thumb is 6.0% per year up to ten years of lease term, with a declining percentage in the years following the 10th year. The basic formula is: (annual rent per square foot) x (total square feet) x (years of term) x 6.0% For example: If Company A signs a 10-year lease for 20,000 square feet at $30.00 per square foot, the total commissions paid by the landlord would be: 10 x 20,000 x $30 * 6.0% = $360,000. Note: The above formula does not incorporate adjustments for base rent increases, or “step ups”, during the term of the lease, in which case the commissions would be even higher. Also, in some markets, the broker is paid on the “net rent” defined as the rent exclusive of operating expenses.