There are several reasons why it is important to understand how commissions work:

1. One of the most common pitfalls a tenant makes is to tour properties without having decided on a brokerage relationship. If you plan on hiring a tenant rep, do so in advance of going on a property tour. If you plan on trying to find space on your own, make sure that any properties you have an interest in are shown to you by the listing agent (or owner, if the property is not listed). The reason this is so important is that in most cases, all an agent has to do is to bring the tenant to a property and he/she is legally entitled to a portion of the leasing commission as the “procuring” broker. A tenant may never see the agent again, but since that agent showed them the property, that agent will be paid a commission. These situations can also get real messy. For example, if later on that tenant hires a tenant rep, a commission dispute will likely occur if the tenant enters into a lease on a property that was shown to them by another agent.

2. Knowing how much your tenant rep will earn is important when it comes to how much service to expect. The larger the commission, the more work you should expect and the more diligent you should be in hiring your tenant rep.

3. Commercial real estate commissions are, in most cases, calculated as a percentage of the rent due under the lease. The higher the rent and longer the term, the more commission is paid. This may be great for the landlord, but is usually contrary to what the tenant is trying to achieve.

4. Commissions are paid only if a lease is successfully executed. The quicker a lease is signed, the faster the agent gets paid. While this may be great for the agent, be careful to ensure that you are making compromises that make sense and not just to hurry up and get the deal done.

The United Kingdom is one of the largest powers in the world, in terms of politics, economy and culture. It is made up of four countries, specifically England, Wales, Scotland and Northern Ireland. The United Kingdom is also a member of NATO, the G8 and the European Union. The United Kingdom is home to plenty of important historical figures and famous personalities. These include notable writers, such as William Shakespeare and Sir Arthur Conan Doyle; popular musicians, such as The Beatles and the Spice Girls; and much-loved sports teams, such as football’s Manchester United. There are also numerous places to visit when in the United Kingdom, such as Stonehenge in Wiltshire, the Eden Project, the Canterbury Cathedral, the Giant’s Causeway and Oxford and Cambridge universities.

The commercial real estate industry in the United Kingdom is receiving much buzz in recent years. There are several factors that contribute to the real estate boom in the U.K. The high rate of immigration to the country, specifically from Asia, Africa and other countries of the European Union, has called on numerous individuals and companies to invest in business undertakings in the U.K. Aside from this, the U.K. is also one of the top ten tourist destinations in the world, with Heathrow Airport being the busiest airport worldwide. All these have called the attention of various local and international businesses to invest in commercial real estate in the U.K. Interest in the commercial property market has increased in recent years. Along with this, rent and the value of these commercial properties have also increased considerably. This makes the market very attractive to local investors, especially in metropolitan areas, such as London, Edinburgh and Glasgow. Various financial institutions are creating funds that will enable different local investors to acquire commercial property in the U.K., further promoting the commercial real estate market in the country. Local investors are not the only ones getting attracted to the commercial real estate market in the United Kingdom. A lot of foreign investors, specifically from the United States, are spending their hard-earned money in order to purchase a significant amount of commercial property in the United Kingdom. One of the reasons for the large number of foreign investors is the high returns of investments that commercial properties in the U.K. are able to generate. In general, there is a higher return of investment that one can receive from property investments than from government or corporate shares.