Commercial Real Estate Salary Tools Key Terms

Make the most of commercial real estate salary tools with some key terms

By Jessica Riendeau

The field of commercial real estate is a complex one that involves sales percentages and commission divisions. The salaries for working in the potentially lucrative field of commercial real estate can be complex too, which is why commercial real estate salary tools can be helpful.

There are some key terms associated with commercial real estate and the salary tools used to calculate salary figures in the industry. In order to figure out an average salary for a job in commercial real estate, gain an understanding of this commonly used key terminology.

Draw account

A draw account is a spending account that can be used by a commercial real estate agent to draw money against their commissions or paid in advance against future commissions. These account figures are factored into overall salary at the end of a sales period.
Try: The Bureau of Labor Statistics explains the function of a special draw account that allows agents to draw money against future commissions, but also cautions that this practice is not universal and new agents should be financially prepared until commissions become regular.

Non-wage benefits

Non-wage benefits are any benefits received by a commercial real estate agent that are not of a monetary nature. Non-wage benefits can include health benefits and retirement plans. Some commercial real estate brokerages deduct taxes from overall salaries for these benefits.
Try: EconBrowser explains the trend in non-wage benefit awards and examines whether the trend will help or hinder industries like commercial real estate.

Leasing commission

A leasing commission is a commission bonus paid when a tenant signs a lease for a commercial real estate property.
Try: OfficeSpace explains how leasing commissions work and what factors can affect the receipt of such a commission.

Gross commission

The gross commission is the value of a sale to an agent found by multiplying the sale price of the house by the commission rate. This is the amount a commercial real estate agent earns before splitting up the commission.
Try: Altius Directory explains gross commission and how it's affected by other commission rates in commercial real estate. Learn what the average is for gross commissions and the rate that most commercial real estates earn after the gross commission is divided.

Referral fee

A referral fee is a bonus awarded to a real estate agent for referring a qualified buyer or seller to a property.
Try: U.S. Commercial Brokerage explains the referral fee program that it offers to real estate brokers or property managers.

Percentage split

The percentage split is the division of a sales commission between a commercial real estate agent and his broker based upon an agreed percentage. The most common split is 50-50, but some can be 80-20 in favor of the broker.
Try: Hembree and Associates Commercial Real Estate explains the calculation of a percentage split between agent and broker.