What Is a Typical Commercial Real Estate Agent Commission (Buyer Agency)?

Key Takeaways

• Buyer’s agents in commercial real estate represent your best interests, helping you find, evaluate, and negotiate property deals.
   
• The 2024 NAR settlement changed the rules—commissions are now negotiated directly, and sellers are no longer required to offer compensation through MLS platforms.
   
• Buyer representation agreements are now required before you tour properties, and they must clearly explain how your agent will be paid.
   
• Commission rates vary—they may be percentage-based, flat fees, or based on lease value, and are often customized based on the deal’s size and complexity.
   
• Buyers can negotiate commission terms with their agents and even structure seller-paid commissions through concessions or offer adjustments.
   
• Being clear and upfront about commissions helps avoid confusion and protects both the buyer and the agent.

Introduction

When you're buying a commercial property, there’s more to think about than just price and location. One important piece of the puzzle is understanding how your real estate agent gets paid. This is especially true if you're working with a commercial buyer’s agent—someone who represents your best interests in the deal.

Unlike residential real estate, commercial transactions often involve bigger price tags, longer timelines, and more room for negotiation—including commission rates. Knowing how commissions work helps you budget better and avoid surprises at closing.

In this blog, we’ll break down what a typical commercial real estate agent commission looks like when you’re the buyer. We’ll also cover who pays it, how it’s negotiated, and why it matters for your bottom line. Let’s make it simple.

What Is a Buyer’s Agent in Commercial Real Estate?

A buyer’s agent in commercial real estate is a licensed professional who represents you, the buyer, during a property purchase. Their main job is to help you find the right property, negotiate the best deal, and guide you through the entire buying process. Unlike a listing agent—who works for the seller—a buyer’s agent is on your side.

They look out for your best interests by:

• Searching for properties that fit your needs and budget
   
• Researching market trends and property values
   
• Helping you analyze lease terms, zoning issues, or potential income
   
• Negotiating purchase price or lease terms
   
• Connecting you with inspectors, lenders, attorneys, or contractors
   

In commercial deals, having a buyer’s agent is especially helpful. These deals are more complex than residential ones. You might be dealing with retail spaces, office buildings, warehouses, or mixed-use properties—all of which require different types of expertise.

So when you hire a buyer’s agent, you’re not just getting someone to unlock doors. You’re getting a business advisor who can help protect your investment.

Who Pays the Buyer’s Agent Commission — After the 2024 NAR Settlement

The National Association of REALTORS®' March 2024 settlement fundamentally changed how buyer’s agent compensation is handled in the U.S.—including commercial real estate when listed on MLS-like platforms:

• As of August 17, 2024, sellers are no longer required to offer a buyer’s agent commission, and commissions can no longer be advertised on MLS or similar system.
   
• Buyer’s agent commissions must now be negotiated directly, either:
   
  1. Between the buyer and their agent, or
      
  2. As part of negotiations with the seller (e.g., via seller concessions in the contract).
      
• Written buyer–agent agreements are mandatory before any property tours—laying out clearly how much, and how, the agent will be paid.
   
• Sellers can still choose to offer buyer agent commissions, but must do so privately—directly to the buyer’s agent, not via MLS listings.
   
• Buyers now face the choice: pay the commission themselves, negotiate for seller-paid commission, or include it in their offer as a concession.
   

What This Means for Commercial Buyers

• Greater transparency & flexibility. You’ll negotiate commission terms upfront with your agent—no hidden listings baiting you—or potentially structure a deal that makes sense for both sides.
   
• Commission responsibility shifts. Unlike the old seller‑pays‑all model, the financial burden can shift to you—unless you convince a seller to cover your agent’s commission through concessions.
   
• Written agreement is essential. With a signed buyer–agency agreement, you legally commit to your agent’s fee model (percentage, flat, or hourly), and both parties stay on the same page.

What Is the Typical Commission for a Commercial Buyer’s Agent?

There’s no fixed rule when it comes to how much a commercial buyer’s agent earns. Unlike residential real estate—where a 2.5% to 3% commission is fairly standard—commercial real estate is much more flexible. The commission can vary depending on the property type, deal size, and how the buyer and agent choose to work together.

Common Commission Structures:

1. Percentage-Based – Typically ranges from 1% to 4% of the total sale price. Larger deals may see lower percentages.
    
2. Flat Fee – A set amount agreed upon in advance (e.g., $5,000 or $25,000 depending on scope).
    
3. Hourly or Retainer-Based – Rare, but some agents may charge hourly for consulting or require a retainer, especially in high-complexity or investment deals.
    

Factors That Affect Commission Rates:

• Property Value – Higher prices often lead to smaller percentage commissions.
   
• Lease vs. Purchase – Agents representing lease transactions may earn commissions based on a percentage of total lease value (like 4% of the first 5 years).
   
• Market Conditions – In hot markets, agents may accept lower commissions due to higher volume. In slower markets, they may charge more.
   
• Experience & Specialization – Veteran agents with niche expertise often command higher fees.
   

With the 2024 NAR Settlement in play, commissions are even more negotiable. You and your agent can agree on the rate that fits your goals—and you’re not stuck with a one-size-fits-all percentage.

 How Commission Agreements Are Structured

Before your agent starts searching for properties or setting up tours, there’s one thing you’ll need to have in place: a buyer representation agreement. This agreement outlines how your commercial buyer’s agent will be paid—and under the 2024 NAR settlement, it’s now required before seeing any properties.

What’s in a Buyer Representation Agreement?

• The commission amount or structure (percentage, flat fee, or hourly)
   
• Who pays the commission (you, the seller, or a mix—negotiated as part of the deal)
   
• How long the agreement lasts (typically 3 to 6 months, but negotiable)
   
• Whether the agreement is exclusive or non-exclusive
   

Exclusive vs Non-Exclusive Agreements:

• Exclusive: You agree to work only with one agent, and they’re guaranteed commission even if you find a property on your own.
   
• Non-Exclusive: You can work with other agents, but your current agent only gets paid if they’re involved in the final deal.
   

Commission Sharing

In some cases, the listing broker may offer a separate off-MLS agreement to share commission with your agent. This kind of arrangement must now happen outside the MLS and be fully disclosed to all parties involved. This is more common in large commercial transactions and national brokerage networks.

Why It Matters

• Without a written agreement, your agent might not be able to represent you at all.
   
• You could also be on the hook for their fee, even if you assumed the seller was paying.
   

That’s why it’s important to understand what you’re signing—and to ask questions if anything is unclear.

Negotiating Commission in Commercial Real Estate

One of the biggest shifts in recent years—especially after the 2024 NAR settlement—is the increased flexibility buyers now have when it comes to negotiating commissions. Unlike in the past, you’re no longer locked into a specific commission structure. Everything is up for discussion.

Can Buyers Negotiate the Commission?

Yes—and they should. Since the buyer’s agent is now typically paid through a buyer agreement, you can discuss:

• What you’re comfortable paying
   
• How the agent will earn it (percentage vs flat fee)
   
• Whether it can be covered by the seller as part of the final deal
   

Just remember: your agent is providing a professional service. If they’re offering market insights, running comps, handling negotiations, or saving you from legal or zoning headaches, their work carries real value. So it’s okay to negotiate—but don’t assume free equals better.

Can Commissions Be Rolled Into the Deal?

Yes, they can. Even if the seller isn’t offering a commission upfront, you can request the seller to cover your agent’s fee as part of the purchase agreement—through:

• Seller-paid concessions
   
• A higher offer price that builds in the commission
   
• Credits at closing
   

The key is to communicate this during negotiations, before you finalize the offer.

Tips for a Smooth Commission Discussion:

• Be clear on how your agent will be paid before you start the property search
   
• Ask if the agent is open to different commission models
   
• Don’t be afraid to bring up commission reimbursement in your offer
   

In commercial real estate, negotiation is part of the game—and that includes your agent’s fee. Just make sure everything is in writing.

Why Commission Transparency Matters

In commercial real estate, clear communication around commissions isn't just helpful—it's essential. Especially now, after the 2024 NAR settlement, buyers are more responsible than ever for understanding how their agent is paid.

Avoiding Hidden Costs

In the past, commission details were often baked into deals and rarely discussed in detail. Now, because commissions aren’t posted on MLS platforms and are negotiated privately, buyers can be surprised by unexpected fees or responsibilities. A lack of transparency can lead to:

• Confusion at closing
   
• Duplicate commissions
   
• Disputes between buyers and agents
   

That’s why it’s important to know exactly what your agent charges, who’s expected to pay it, and how it will be handled in the deal.

Questions to Ask Your Buyer’s Agent

To stay informed, ask your agent the following before signing anything:

• “What’s your commission, and how do you typically get paid?”
   
• “Can we structure your commission as part of the offer?”
   
• “If the seller isn’t offering compensation, what are my options?”
   
• “Can we put everything in writing before we view properties?”
   

Protecting Yourself as the Buyer

Don’t assume anything. Just because you’re working with an agent doesn’t mean their commission will be automatically paid by someone else. That’s why your buyer representation agreement must clearly outline:

• The exact fee
   
• When and how it’s due
   
• What happens if the deal falls through
   

With more transparency comes more control. When everyone’s on the same page, the entire transaction runs smoother—and you can focus on finding the right commercial property without worrying about surprise costs.