Results
Total Lease Value
—
Total Commission
—
Broker Net
—
NAI Long Island
Co-Broker
—
None
1
Deal Information
Parties
Broker
2
Lease Terms
Space
RSF
$
PSF/yr
$
PSF/yr
Term
months
months
Abatement & Escalation
months
%
3
Commission Rates
Commission — Years 1–3
%
Commission — Year 4+
%
4
Year-by-Year Commission Schedule
| Year | Annual Rent | Abatement | Net Rent | Escalation | Comm. Rate | Commission |
|---|---|---|---|---|---|---|
| Enter lease terms above to see the commission schedule | ||||||
NAI Long Island — Tools & Resources
Online Commercial Lease Commission Calculator
How to Use the Lease Commission Calculator
Understanding the costs involved in a commercial real estate transaction is vital for both landlords and tenants. While rates can vary based on the market and property type, most commercial lease commissions are calculated as a percentage of the total lease value over the term of the agreement.
The Standard Lease Commission Formula
To estimate the broker fee, our CRE commission calculator typically uses the following formula:
Total Rent X Commission Percentage = Total Commission Fee
For example, if a tenant signs a 5-year lease at $50,000 per year with a 4% commission rate, the total commission would be based on the $250,000 aggregate lease value, resulting in a $10,000 fee.
Key Factors That Affect Broker Fees
Several variables can influence the final numbers you see on a commercial broker fee estimator:
- Lease Term: Longer-term leases often result in higher total commissions but may feature “declining scales” (e.g., 5% for year one, 4% for year two).
- Property Type: Commission structures for Long Island office spaces may differ slightly from industrial or retail lease agreements.
- Tenant Improvements (TI): In some negotiations, the commission is calculated on the “net” rent after subtracting any tenant improvement allowances.
- Co-Brokering: If both a landlord’s agent and a tenant representative are involved, the commission may to subject to an override (office leases) or split (industrial & retail). The NAI Lease Commission Calculator uses an override scenario.
Why Use a Commercial Lease Calculator?
Using a professional lease agent fee calculator ensures transparency during negotiations. Whether you are a property owner budgeting for a new vacancy or a business looking for Long Island commercial real estate, knowing these figures upfront helps you manage your cash flow and closing costs more effectively.
Enter your deal details below and the results update automatically. When your calculation is complete, print or save a one-page PDF report.
01
Deal Information
Parties
Landlord
Name of the property owner or ownership entity.
Name of the property owner or ownership entity.
Tenant
Name of the tenant or company signing the lease.
Name of the tenant or company signing the lease.
Property Address
Street address, city, state, and zip code of the leased property. This appears on the printed report for reference.
Street address, city, state, and zip code of the leased property. This appears on the printed report for reference.
Broker
Broker / Firm
Name of the representing brokerage or individual broker.
Name of the representing brokerage or individual broker.
Co-Broker OPTIONAL
If another firm is sharing the commission, enter their name here. Leave blank if there is no co-broker. Entering a name reveals the Co-Broker Split field.
If another firm is sharing the commission, enter their name here. Leave blank if there is no co-broker. Entering a name reveals the Co-Broker Split field.
Co-Broker Split
Percentage of the total commission paid to the co-broker. The remaining percentage is automatically retained by the listing broker. Defaults to 50%.
Percentage of the total commission paid to the co-broker. The remaining percentage is automatically retained by the listing broker. Defaults to 50%.
02
Space
Leased Area
The rentable square footage (RSF) of the space being leased.
The rentable square footage (RSF) of the space being leased.
Base Rent Rate
Annual base rent per square foot. Enter the dollar amount only — for example, enter 20 for $20.00 PSF/year.
Annual base rent per square foot. Enter the dollar amount only — for example, enter 20 for $20.00 PSF/year.
RE Tax Adjustment
Real estate tax pass-through per square foot per year, if applicable. Enter 0 if none.
Real estate tax pass-through per square foot per year, if applicable. Enter 0 if none.
03
Lease Term
Lease Start
The commencement date of the lease.
The commencement date of the lease.
Lease Term
Total length of the lease in months. Enter 60 for a 5-year lease, or 124 for a 10-year 4-month lease.
Total length of the lease in months. Enter 60 for a 5-year lease, or 124 for a 10-year 4-month lease.
Final Partial Year
If the lease does not end on a full year boundary, enter the number of remaining months. Enter 4 for a 4-month stub period, or 0 if the lease ends on a complete year.
If the lease does not end on a full year boundary, enter the number of remaining months. Enter 4 for a 4-month stub period, or 0 if the lease ends on a complete year.
04
Abatement & Escalation
Rent Abatement
Number of free-rent months included in the deal. Enter 0 if no abatement applies.
Number of free-rent months included in the deal. Enter 0 if no abatement applies.
Abatement Type
How the free-rent period is applied across the lease term:
How the free-rent period is applied across the lease term:
Front-Loaded — All free-rent months are applied at the start of the lease.
Spread Evenly — The abatement value is distributed proportionally across every lease year.
Annual Escalation Rate
Percentage by which the base rent increases each year. Enter 3 for 3% annual escalations. Enter 0 for a flat, non-escalating rent.
Percentage by which the base rent increases each year. Enter 3 for 3% annual escalations. Enter 0 for a flat, non-escalating rent.
05
Commission Rates
Commission — Years 1–3
Commission rate applied to net rent in the first three lease years. Standard rate: 7%.
Commission rate applied to net rent in the first three lease years. Standard rate: 7%.
Commission — Year 4+
Commission rate applied to net rent from Year 4 through the end of the lease. Standard rate: 3%.
Commission rate applied to net rent from Year 4 through the end of the lease. Standard rate: 3%.
Broker Override OPTIONAL
An additional percentage added on top of the total calculated commission, such as a management override. Leave at 0.00 if not applicable.
An additional percentage added on top of the total calculated commission, such as a management override. Leave at 0.00 if not applicable.
06
Reading the Results
Once all fields are filled in, the Results bar displays four summary figures:
| Field | Description |
|---|---|
| Total Lease Value | The sum of all annual rents over the full lease term, before abatement is applied. |
| Total Commission | The total brokerage commission calculated on net rent (after abatement) across all lease years. |
| Broker Net | The portion of the total commission retained by the listing broker after the co-broker split. |
| Co-Broker | The portion of the commission allocated to the co-broker. Displays a dash if no co-broker was entered. |
07
Year-by-Year Schedule
The table below the Results bar shows a full commission breakdown for every year of the lease:
| Column | Description |
|---|---|
| Year | Each full lease year, numbered sequentially. A Final Partial row appears if the lease term includes a stub period. |
| Annual Rent | Gross rent due for that year, after escalation but before abatement. |
| Abatement | The free-rent credit applied to that year, shown as a negative value in red. |
| Net Rent | Annual Rent minus Abatement — the amount on which the commission is calculated. |
| Escalation | The escalation rate applied to that year’s rent. A dash (—) indicates no escalation in Year 1. |
| Comm. Rate | The commission percentage applied to that year — 7% for Years 1–3, 3% from Year 4 onward. |
| Commission | The commission earned for that specific year. The Totals row at the bottom shows the sum across all years, highlighted in green. |
08
Printing & Saving as PDF
To Print or Save a PDF Report
1
Complete all fields and confirm the results are correct.
Complete all fields and confirm the results are correct.
2
Click the Print / Save PDF button in the top-right corner of the calculator.
Click the Print / Save PDF button in the top-right corner of the calculator.
3
A clean one-page report opens in a new window and the print dialog appears automatically.
A clean one-page report opens in a new window and the print dialog appears automatically.
4
To save as a PDF, select Save as PDF (or Microsoft Print to PDF) from the printer destination dropdown.
To save as a PDF, select Save as PDF (or Microsoft Print to PDF) from the printer destination dropdown.
5
Click Save and choose a location on your computer.
Click Save and choose a location on your computer.
⚠ Pop-up blocker: The report opens in a new browser window. If the print dialog does not appear, look for a pop-up blocked notification in your browser’s address bar, click it to allow pop-ups from this page, then click Print / Save PDF again.
Have questions about a specific transaction or need assistance with a deal? Contact NAI Long Island →