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Buying & due diligence · Brokerage
What is a buyer’s broker in commercial real estate, and who pays them?
The short answer
A buyer’s broker in commercial real estate represents the purchaser during a property transaction. This arrangement, called buyer representation, establishes the broker’s responsibility to protect the buyer’s interests. The listing broker represents the seller. In many NNN transactions, the seller pays the negotiated commission at closing, which may be shared between brokers. However, commission arrangements are negotiable, so buyers should confirm the terms before signing.
Read the full answer ↓How does a buyer’s broker differ from a listing broker?
After more than 40 years in commercial real estate, I’ve learned that the important question isn’t simply who pays the broker. It’s whose interests the broker represents.
The difference comes down to representation, loyalty, and fiduciary duty. A fiduciary duty requires an agent to act in the client’s interests under applicable law.
A buyer’s broker helps evaluate pricing, investigate risks, negotiate terms, and coordinate due diligence.
A listing broker markets the property for the seller. Buyers should not assume the listing broker is independently protecting their interests.
Dual agency means one agent or brokerage represents both parties, creating potential conflicts between their financial interests.
California Civil Code Section 2079.16 establishes fiduciary obligations for buyer’s agents and requires both parties’ knowledge and consent for dual agency. Section 2079.17 addresses written confirmation of agency relationships.
My preference is buyer-only representation. I believe buyers deserve an adviser focused on their side of the transaction.
Who pays the commercial real estate commission?
In many NNN sales, the seller pays a commission from closing proceeds. A commission split is the negotiated division of compensation between participating brokerages.
The National Association of REALTORS®’ 2026 Code of Ethics, Standards of Practice 1-12 and 1-13, states that brokerage compensation is not set by law and is fully negotiable.
Illustration
A hypothetical 2% commission on a $2 million sale equals $40,000. This is a calculation, not an industry-average rate.
Before engaging a broker, ask whether you could owe a fee if the seller offers insufficient compensation.
What does a commercial buyer’s broker actually do?
A qualified commercial buyer’s broker should provide more than property listings.
The work includes sourcing available and off-market opportunities, screening tenant credit, comparing cap rates, reviewing lease obligations, negotiating purchase terms, and coordinating inspections.
An offering memorandum is a seller-prepared marketing document, not independent verification of a property’s financial performance.
Our guide to evaluating an NNN leased property explains important underwriting considerations.
Key brokerage terms
- Buyer representation
- Brokerage services performed on behalf of a purchaser.
- Listing broker
- A broker engaged to market property for a seller.
- Dual agency
- Representation of both buyer and seller in one transaction.
- Commission split
- An agreed division of brokerage compensation.
What should buyers ask before signing?
Ask whom the broker represents, how compensation works, whether dual agency is possible, and what due diligence support is included.
- Whom does the broker represent?
- How does compensation work?
- Is dual agency possible?
- What due diligence support is included?
Key takeaways
- Buyer representation and seller representation serve different interests.
- Broker commissions are negotiable, not legally fixed.
- Buyer-only representation helps avoid divided loyalties.
- Independent underwriting remains essential.
Explore NNN real estate for sale and ask how we’ll evaluate a property before you commit.
At Triple Net Companies, our buyer-focused approach starts with screening opportunities, not simply forwarding listings.
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