Who pays the commercial broker?

Typically, the commercial broker is compensated by the property owner but on the rare occasion that the owner refuses to pay and the broker is representing the buyer or the tenant then we can seek compensation directly from them.  A common misconception is the agent’s commission adds to the purchase price or lease rate. The reality is that an engaged professional can achieve a much higher purchase price than the typical owner because of market knowledge and experience. On the occupant side, an experienced professional can negotiate a better lease rate and concession package because of our knowledge of comparables, availabilities, motivation and our expertise. The net result is a better deal for both parties.

What is are TI (Tenant Improvements):  Almost every commercial building will require the landlord to make modifications to the building and those are changed under the (TI) Tenant Improvements.  Typically, the TI is completed by the tenant but depending on the size, age, and condition of a property will depend on the modifications required.  Whatever improvements or modifications being done to the property needs to be clearly defined in the lease agreement so both parties understand their responsibility.  Sometimes property owners like to offer a TI allowance (TIA) or concessions to help facilitate a deal.  When this happens the it is offered as a gross amount or a price/per square foot basis.