LEASING: Why are tenant rep brokers sometimes paid higher commissions than landlord rep brokers?
For example, it seems like for office leasing, the tenant's broker generally get paid more commissions than the landlord's broker. Has it always been this way?

For retail leasing, is it generally 50/50 commission split?
[{"id": "j1obv8r", "text": "Honestly? It's probably an offset for the extra work. Tenants require a lot of hand holding and that puts some hard bandwidth restrictions on a brokers time that aren't there with listings. \n\nAdd to that the fact that tenants reps always have to show up where listing brokers can give a lock box code and the pay disparity isn't really as great as you'd think.", "replies": [{"id": "j1oc18m", "text": "As to your 2nd point. I do a lot of retail and when I'm doing the listing it's always an equal split. I've never asked my counterparts what they're getting paid on assignments where I'm the tenant rep.", "replies": [], "depth": 2}], "depth": 1}, {"id": "j1obvbz", "text": "Because the listing agent may agree to take a lower fee to get the listing. The tenant rep. broker didn't agree to those terms and is only doing 1 to a couple of deals at the property.", "replies": [], "depth": 1}, {"id": "j1odaq9", "text": "Because LL reps would have nothing to do if the TR didn't bring some?\n\nEdit: Grammer", "replies": [{"id": "j1otosx", "text": "Do LL reps proactively offer a generous split to the TR right off the bat?", "replies": [{"id": "j1q2s0p", "text": "I work corporate and midmarket office in Phoenix - TR and LLR. Yes, typically. Depends on the LL and the Tenant being brought, and also the deal.\n\nA lot of the times, if it\u2019s a 3yr deal, you only get a 3% commission. 5yr, 5% - even with suburban office. \n\nA few of my LL\u2019s are local mom and pop owners and the max we can give TR\u2019s is 3%, as an example. But, sometimes they bend if it\u2019s a big pro rata and a solid Tenant (blue chip, institutional, etc).", "replies": [{"id": "j1sfe0u", "text": "Agree... in a lot of places it happens off the bat. Tenant rep fees become the norm, and no LL rep wants to be the odd one out offering 20% less than the other properties. 100% of zero is zero...", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j1oe6zv", "text": "Tenants probably add more value to the building than the agent showing up to unlock the door. Good retail tenants earn tenant side brokers  a full commission and landlord reps a half commission if their credit is good enough.", "replies": [], "depth": 1}, {"id": "j1oexua", "text": "Just depends on market and asset class. Not uncommon at all for tenant rep to get more, I\u2019d call it standard in my experience. Landlords need a carrot to get tenant reps to push for their building. While LL reps are important in getting a deal done, they need a tenant and tenant rep first.", "replies": [], "depth": 1}, {"id": "j1ol65o", "text": "In more than 50% of cases, LL rep is also managing the prop, taking a fee off that on an ongoing basis.", "replies": [{"id": "j1p0gyb", "text": "On this note, the best LL reps have less tenant reps to deal with because they know their tenants already.", "replies": [{"id": "j1pewah", "text": "Theoretically good, but property managers can be the most obnoxious people on earth and then it\u2019s up to the leasing agents to smooth it over.", "replies": [], "depth": 3}], "depth": 2}, {"id": "j1q3an7", "text": "When you\u2019re in overbrokered markets like Florida or AZ, I think this starts to go away. I haven\u2019t seen a listing (corp/midmarket office specialist btw) who is doing that in a long time, even for the REIT/PEG held stuff. For example, the CBRE Management team kicks ass here in Phoenix. But, a lot of the listings for leasing go to JLL or Cushwake.", "replies": [{"id": "j1qcj65", "text": "This is how it should be.. since pm\u2019s and leasing agents have competing incentives!", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j1oml56", "text": "Tenant reps bring the value to the property with a tenant, and LL reps do more volume by having listings with multiple suites to lease and manage.  It all works out in the end and those who know their worth add value to both sides.  Don\u2019t count the commission, count the fact that the clients get what they needed and are satisfied.", "replies": [], "depth": 1}, {"id": "j1on97d", "text": "The split between LL and TR varies by market and by type. In my market, it used to be normal for the TR broker to get 4.0% on office and retail deals, and the LL rep to get 2.0%. I\u2019ve seen more LLs paying their LL reps more, sometimes 4.0%. Obviously, the commissions are built into the rental rates, so when a LL is paying a combined 8.0%, the rental rates are affected, or the LL has to take less NOI. \n\nRegarding the reason, I\u2019ve been a LL rep, and I\u2019ve done some TR work. In my experience, the LL rep is often doing more of the work on the deal.  The TR does more on the front end (e.g. securing the assignment, assisting the tenant with search parameters, surveying the market, narrowing down the options). The work LL reps and TRs do is really apples and oranges, IMHO.", "replies": [], "depth": 1}, {"id": "j1ouveh", "text": "Have you seen the office market lately? People giving 3 psf broker bonuses. Ugly out there", "replies": [{"id": "j1ovb12", "text": "Before 2008, when offices were a more attractive asset class, did LL reps and TR reps split the commission 50/50?", "replies": [{"id": "j1oy4b8", "text": "You get what you negotiate.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "j1ox1ld", "text": "Because the tenant rep brings the tenant.", "replies": [], "depth": 1}, {"id": "j1q19ys", "text": "It seems to be a tad higher for the Tenant.  I think the splits are supply &amp; demand.  When tenants are in higher demand than physical space the Tenant reps can drive a higher bargain, and vice versa. This is from a retail Landlord perspective.", "replies": [], "depth": 1}, {"id": "j1q4wd4", "text": "Retail it depends on the tenant. Mom and pop tenant you're looking at 50/50 but if you're bringing chase bank and have plenty of options the broker can demand a higher fee to bring them to your property. Excellent credit can drive up a fee. LL broker usually signs a listing agreement and that doesn't change, their job is to find a tenant regardless of credit but the better the credit usually the better the rent so better fee for them too.", "replies": [], "depth": 1}, {"id": "j1s24ec", "text": "The tenant rep brings the shark, the landlord side is typically expected to take the hit in exchange for bringing them a tenant.  The idea also is to motivate them to bring you a long term lease that pats a lot by rewarding them with a cut. \n\nLandlord reps do more work and typically take on more liability in many states where they do the contractual work or disclosures in some circumstances. \n\nThe standards on this are due for revision.", "replies": [], "depth": 1}, {"id": "j1sioht", "text": "LL reps gets full commission and slip with TR. it\u2019s common 50% split; however it does not have to be an even split as long as it\u2019s advertise. \nI have taken the lower end just for listing and marketing with owner doing the prep and showing.", "replies": [], "depth": 1}, {"id": "j1um19e", "text": "Tenant reps bring the value and control. The control is their relationship with their client and the value they are bringing is the value of the rental payment over the term.  If LL tries to cut broker fee last minute they probably won\u2019t be good LL for tenant. LLs don\u2019t want to offer less than market fees to tenant rep broker because once they catch wind they won\u2019t push your space to tenant and more professional / higher credit LLs who can typically offer more TI and nicer space will win deal", "replies": [], "depth": 1}]