What to Expect When a Commercial Real Estate Broker Contacts You on Colleague

As a business listing your fractional office space on Colleague, you might be contacted not only by potential tenant businesses (“Guests”), but also by commercial real estate brokers acting on their clients’ behalf.If you’re contacted by a broker, don’t be surprised—it’s a common and entirely professional part of the real estate ecosystem. Brokers play an important role in helping companies find suitable office space, and Colleague is the go-to resource for hybrid workspace solutions. Here's what you should know when a broker reaches out.

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Why Are Brokers Reaching Out to Me?

‍Many companies rely on commercial real estate brokers to conduct office space searches, handle vetting, and negotiate deals. When a broker contacts you about your Colleague listing, they’re doing so on behalf of a client who’s likely a serious prospect. That can be a good sign: the broker’s client has already engaged them and is actively looking for space.

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Broker Commissions Are Standard Practice

‍If a broker introduces you to a client who ultimately signs a sublease or license agreement for your fractional office space, they will typically request a commission. This is not an unusual or unexpected cost—it’s standard industry practice and how brokers earn a living.

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Here’s how it usually works:

• The commission is typically 5% to 10% of the total lease value, calculated based on the total rent over the duration of the agreement.
  
• The commission is payable upon execution of the sublease or license, and only when:
  
  
  • You (the Host) have received a signed agreement from the Guest,
    
  • You have received the security deposit, and
    
  • You have received the first and last month’s rent or license fee.
    

In short: payment is due once the deal is officially closed and money has changed hands. This aligns the broker’s incentives with yours and ensures you’re not paying for unproven leads.

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Use a Commission Agreement to Keep Things Clear

‍To help facilitate these brokered arrangements, Colleague provides a simple form commission agreement that you and the broker can complete and sign. This document clearly spells out the commission amount, timing, and conditions for payment. It protects both sides and avoids misunderstandings.

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You can find the commission agreement template [here]. We strongly encourage Hosts to use it if a broker requests compensation for bringing a client to your space.While Colleague does not take a commission on listings or deals, we are designed to work seamlessly with commercial real estate brokers. In fact, we see them as important partners in helping companies meet their real estate needs.

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Whether you’re dealing directly with another business or working with a broker, our goal is the same: to help you make the most of your available office space—efficiently, flexibly, and fairly.

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👉 Need the commission form? Visit our Resources tab and download it today.