Typically, lease commissions in real estate are based on a percentage of the total lease value. Here’s how it breaks down:

Standard Lease Commission Structure:

• 10% of Gross Lease Value → This is a common benchmark for a full lease commission (total rent over the lease term).
• Co-Broker Commission:
  • 5% → A fair split if the market is balanced and there’s decent supply.
  • 2.5% → If there’s a lack of supply and you need to incentivize the listing broker more to get the deal done.

Factors to Consider:

1. Lease Term: Longer leases (e.g., 5+ years) may justify a lower percentage, while shorter ones may demand a higher rate.
2. Market Conditions: If it’s a tenant’s market with plenty of options, you may need to offer a higher co-broker split to encourage activity.
3. Property Type & Demand: If your listing is in high demand, you can justify the 2.5% co-broker split to keep more of the commission.