A commercial real estate broker wins listings from owners, prices and markets business property, finds buyers or tenants, negotiates the deal and keeps it on track until it closes. The US Bureau of Labor Statistics (BLS) gives one duty list for brokers and sales agents, and it covers commercial work too (BLS, real estate brokers):
- Find clients who want to buy, sell or rent property
- Advise clients on prices, mortgages and market conditions
- Compare properties to set a competitive price
- Market listings and show them to buyers or tenants
- Present offers and mediate the negotiation
- Check that the terms of the purchase contract are met
- Prepare documents such as purchase agreements and leases
A commercial broker does that work on offices, shops, warehouses and other business property. O*NET, the US Department of Labor's occupation database, describes a broker who works "for commercial real estate firm, overseeing real estate transactions" (O*NET, real estate brokers). Commercial deals add financial work a home sale rarely needs. The Real Estate Council of Ontario (RECO) says a commercial agent can "Review the financials provided by sellers, create underwriting for investment properties" (RECO, commercial guide). Underwriting here means testing a building's income and costs to see what it can support.
O*NET also asks working brokers how important each task is to their job, on a scale of 0 to 100. Getting listing agreements from owners comes out on top.
Source: ONET OnLine, Real Estate Brokers (41-9021.00), task importance on a 0 to 100 scale, updated 2026. National Center for ONET Development, for the U.S. Department of Labor.
The ratings cover residential and commercial brokers together, because O*NET counts them as one occupation.
A brokerage is the firm that brokers and agents work through. In Ontario, "Clients enter a representation agreement with the brokerage", and the agent you meet acts for that firm (RECO, commercial guide). The firm holds the listing and pays the agent a share of the fee.
On a sale, the listing broker prices the building, markets it, collects offers, negotiates the letter of intent and the purchase agreement, then follows every deadline to closing. Each step has its own document, and other professionals take over parts of the deal. Take a hypothetical sale of a 20,000 square foot warehouse:
| Stage | What the broker does | Document | Who else works on it |
|---|---|---|---|
| Listing | Signs the owner, agrees the fee and the term | Listing agreement | Owner |
| Pricing | Compares recent sales and the rent the building collects | Broker opinion of value | Owner |
| Marketing | Writes the sales package and calls likely buyers | Offering memorandum | Photographer, listing services |
| Offers | Tours buyers, compares bids and negotiates price and terms | Letter of intent | Buyer's broker |
| Contract | Carries the business terms into the contract | Purchase and sale agreement | Both lawyers |
| Due diligence | Gathers leases and tenant confirmations, chases deadlines | Estoppel certificates | Inspector, appraiser, lender |
| Closing | Confirms each condition is met and the deal can close | Closing statement | Title or escrow company, lawyers |
The broker writes the business terms. The lawyers write the contract, the appraiser values the building for the lender, and the title company moves the money.
After signing, the broker runs the calendar. A purchase agreement sets dates for the deposit, the inspection period, the financing condition and the closing, and a missed date can end the deal. ONET rates "Monitor fulfillment of purchase contract terms to ensure that they are handled in a timely manner" at 81 for brokers (O*NET, real estate brokers). Brokers also "Check work completed by loan officers, attorneys, or other professionals", a task ONET rates at 70.
A tenant rep broker works for the business that needs space: it sizes the need, surveys the market, tours buildings, asks landlords for proposals, compares them and negotiates the lease. The usual steps:
- Turn the tenant's headcount and plans into a target size and budget
- List every building that fits, including space that is not yet advertised
- Tour the short list and ask each landlord for a written proposal
- Compare the proposals over the whole lease term
- Negotiate the letter of intent, then review the lease with the tenant's lawyer
RECO's guide describes the same work: an agent can "Identify properties that meet your specific needs, including properties that might not be publicly marketed" (RECO, information guide). The broker also bargains over the tenant improvement allowance, the money a landlord puts toward fitting out the space. The guide to the TI allowance explains how landlords set it.
Net effective rent is the average rent over the lease once the landlord's concessions, such as free months, come off. Brokers use it to compare offers with different asking rents. Take a hypothetical tenant that needs 5,000 square feet for five years, with a fit-out that will cost $50 per square foot:
| Offer A | Offer B | |
|---|---|---|
| Asking rent per square foot per year | $32 | $30 |
| Free rent | 4 months | None |
| Improvement allowance per square foot | $40 | $15 |
| Rent paid over five years | $746,667 | $750,000 |
| Net effective rent after free months, per square foot per year | $29.87 | $30.00 |
| Fit-out the tenant pays itself | $50,000 | $175,000 |
| Tenant's total cost over five years | $796,667 | $925,000 |
Offer A asks $2 more per square foot and costs the tenant $128,333 less over the term. The asking rent alone points the tenant at the wrong building, and that comparison is the core of a tenant rep's job.
On a commercial lease the landlord usually pays the tenant's broker out of the deal. The brokerage guide shows who pays the commission, with the federal government's own leases as the example.
A broker holds the higher licence and can run a brokerage and supervise agents, while a sales agent works under a broker; on a deal, both do the same work. The BLS puts it plainly: "Although brokers and agents do similar work, brokers are licensed to manage their own real estate businesses" (BLS, real estate brokers). It adds that "Sales agents must work with a real estate broker."
The broker title says less about the daily job than its name suggests. In O*NET's ratings, brokers place supervising agents at 66 out of 100 and class it as a supplemental task (O*NET OnLine, broker profile). Selling property owned by others rates 90. A broker spends most days on deals, the same as an agent.
Ontario uses one word for both. RECO's commercial guide says "real estate agent and agent mean a real estate salesperson or broker" (RECO, information guide).
The licence law lists them. California's definition covers anyone who, for a fee, does or negotiates one of these acts for others (California B&P Code 10131):
- Sells, buys or solicits listings of real property or a business opportunity
- Leases or rents property, finds tenants or "collects rents from real property"
- Negotiates loans "secured directly or collaterally by liens on real property"
Each state and province writes its own list, so check the law where the property sits.
You start with a salesperson licence and move up. "All states require real estate brokers and sales agents to be licensed," the BLS notes, and states typically ask for years as a licensed agent before a broker licence (BLS, broker licensing). The careers guide covers the licensing steps in Texas, California and Canada.
Two beliefs mislead clients most: that a broker's price is an appraisal, and that a broker stays out of the financing.
A broker opinion of value is the broker's price estimate for marketing the building. A lender relies on its own valuation, often an appraisal, before it lends. The table above links the valuation guide's comparison of the two, because the broker's number and the appraiser's number can differ.
In California, the real estate broker licence covers that work. California's broker definition includes anyone who "Solicits borrowers or lenders for or negotiates loans" secured by real property (California B&P Code 10131). O*NET's summary of the job includes "arranging loans" among a broker's usual duties (O*NET OnLine, broker profile). Rules for loan brokering differ from one state or province to the next, so check with the regulator before you pay a fee.