Pay structures changing
for commercial practitioners

Commercial real estate is moving away from the traditional method of compensating its practitioners—commissions, according to the National Real Estate Investor.

In the past, commercial brokers earned commissions based in part on the fact that they provided information unavailable from other sources. Namely, they and no one else had access to listings and information about available space.

However, the Internet has changed that. Consumers are now able to access much of this data, making the broker's value in the transaction less clear. As a result, brokers are now offering more ancillary services, such as financing assistance and construction estimates, and charging retainers, fees, or hourly charges for such services.

The change in the compensation structure to a mix of commissions and fees is also changing company structure. Some companies are employing fewer brokers and hiring more employees whose skills complement those of brokers so that they may provide more services.

Buyers & sellers, visit www.texasrealestate.com.
REALTORS®, visit www.tar.org.