IF IT’S FREE FOR TENANTS AND BUYERS TO HIRE REAL ESTATE AGENTS, HOW DO YOU GET PAID?
Because sellers and landlords pay commissions for both their listing agent as well as the buyer’s or tenant’s agent in commercial real estate transactions, an agent can exclusively represent your interests as a tenant and buyer for free. While this is definitely not a secret in residential real estate or to experienced corporations and businesses, many healthcare providers don’t realize the same is true in commercial real estate.
Most landlords are represented by a listing agent who specializes in helping the owner maximize their return on each transaction. We, as the tenant representative, will simply split the commission with the landlord’s listing agent. Even if a landlord does not have an agent, they still pay the tenant agent’s commission, as that is standard practice in both residential and commercial real estate. Almost every landlord factors real estate commissions into their pro forma for owning and operating commercial real estate —it’s just a cost of doing business.