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Don’t get screwed.</text><text x="58" y="258" font-family="Arial,Helvetica,sans-serif" font-size="30" font-weight="600" fill="#6b5b4d">Leases, TI, NNN &amp; buildouts — negotiated in your favor</text><g transform="translate(1010,86)" fill="none" stroke="#C0531F" stroke-width="9" stroke-linejoin="round"><rect x="20" y="40" width="150" height="130"/><line x1="20" y1="40" x2="95" y2="6"/><line x1="170" y1="40" x2="95" y2="6"/><rect x="50" y="80" width="36" height="36"/><rect x="104" y="80" width="36" height="36"/><rect x="74" y="128" width="42" height="42"/></g></svg>

How Do I Avoid Paying Double Brokerage Fees?

Direct Answer

The money move: you, the tenant, almost never pay brokerage fees directly — the landlord does, baked into the deal. The real "double fee" trap is paying for representation twice through dual agency, hidden landlord-broker markups, or a tenant-rep agreement with a tail clause. Standard commercial leasing commissions run 4–6% of total lease value, split between the landlord's listing broker and the tenant's rep.

On a 10,000 SF, 7-year deal at $35/SF, that's a $24.5 million lease value generating $980,000 to $1.47 million in total commission — all landlord-funded.

Here's where tenants get screwed: if you use the landlord's listing broker as your "rep," that broker collects both sides of the commission (dual agency) and has zero incentive to negotiate your rent down. You don't write a check, but you pay through a worse deal — easily $3–$8/SF in lost concessions.

The fix: use an exclusive tenant rep, confirm the landlord pays their fee, and never sign a tenant-rep agreement with a long tail or success fee that survives if you go direct.

Where "Double Fees" Actually Come From

There are three distinct traps people call "double fees":

1. Dual agency. One broker represents both you and the landlord. They split nothing extra in their pocket — they keep the whole 4–6% — but you lose your advocate. The broker who's supposed to push rent down is paid by the side that wants it up.

2. Tenant-rep tail clauses. Your representation agreement says the broker earns a commission on any space they showed you for 6–12 months after the agreement ends — even if you sign without them. Sign two overlapping rep agreements and two brokers can both claim the same deal.

3. Hidden construction and listing markups. Separate from leasing commission, the landlord's broker or property manager may layer a 3–5% construction-management fee and contractor markups of 10–20% onto your TI buildout. That's a second fee on the same transaction.

Rule 1: Get an Exclusive Tenant Representative

A tenant rep is paid out of the landlord's commission pool — the cost is the same to the landlord whether you bring your own broker or not, so using a tenant rep is functionally free to you. The landlord has already budgeted the full 4–6%. If you go unrepresented, the listing broker simply keeps your half.

• Hire a tenant rep from CBRE, JLL, Cushman & Wakefield, or a strong local independent.
• Confirm in the rep agreement that their fee is paid by the landlord, not you.
• Get a rep who works only the tenant side in your submarket to avoid conflicts.

Rule 2: Read the Tail Clause Before You Sign

The tenant-rep agreement's "tail" (or "protection period") is the landline that catches double fees. After the agreement ends, the broker can still claim a commission on any building they registered you for.

• Cap the tail at 90–180 days, not 12 months.
• Demand a written registration list of buildings the broker actually showed you — only those should survive.
• Use one rep at a time. Two exclusive agreements = two claims on the same deal, and the landlord may pay one while you owe the other.

Rule 3: Unbundle the Construction Fees

Leasing commission and construction fees are separate animals. After the lease is signed, the landlord's team may try to manage your buildout and skim:

• Construction management fee: 3–5% of project cost. Negotiate it down or self-manage with your own project manager.
• Contractor markups: General contractors add 10–20%. Demand competitive bids from 3 GCs or a guaranteed-maximum-price contract.
• "Supervision" fees: Some landlords charge to oversee tenant-managed work — cap at 1–2% or eliminate.

On a $1M buildout, these fees alone can quietly add $80,000–$200,000.

Rule 4: Verify the Fee Source in Writing

The single sentence that protects you: "Landlord shall be responsible for all leasing commissions, including the commission payable to Tenant's broker." Put it in the LOI and the lease. With that in place, no broker can come after you for a fee.

If you ever see a clause making the tenant responsible for the tenant-rep commission, strike it. That's the classic setup for paying a fee you should never owe.

When You Might Actually Owe a Fee

Rare, but real:

• No landlord-paid commission market (some small-landlord deals) — negotiate the rep fee into the rent reduction the rep secures.
• Sublease deals where the sublandlord won't pay — clarify upfront.
• You signed a rep agreement, then went direct within the tail period — the tail clause triggers.

Avoid all three by confirming fee responsibility before touring a single space.

FAQ

Do I pay my tenant rep broker directly? Almost never. The landlord funds the full 4–6% commission and the tenant rep is paid out of that pool. Using your own rep costs the landlord nothing extra and costs you nothing — going unrepresented just lets the listing broker keep your half.

What is dual agency and why is it bad? Dual agency is when one broker represents both you and the landlord and collects the entire commission. You lose your advocate — the broker paid to lower your rent answers to the side that wants it raised. It can cost you $3–$8/SF in worse terms.

What's a tail clause and how do I limit it? A tail (protection period) lets your former broker claim a commission after the agreement ends on buildings they showed you. Cap it at 90–180 days and demand a written list of registered buildings so only genuinely-shown spaces survive.

Can the landlord charge me extra construction fees on top of rent? Yes — construction-management fees (3–5%), contractor markups (10–20%), and supervision fees hide in the buildout. Demand competitive GC bids and cap or strike management fees; they can add $80,000–$200,000 to a $1M buildout.

Sources

• CBRE, "Tenant Representation and Brokerage Commission Structures."
• JLL, "Office Leasing: Commission and Concession Benchmarks."
• Cushman & Wakefield, "Tenant Advisory: Avoiding Dual-Agency Conflicts."
• NAIOP — commercial leasing commission norms and construction-management fee guidance.
• BOMA International — operating expense and construction fee standards.
• The Tenant Advisor — tenant-rep agreement and tail-clause negotiation guidance.