How do commercial real estate brokers get paid?

Commercial brokers are typically paid a commission based on the total lease value. The standard commission in British Columbia is 3 to 6 percent of the total lease value, paid by the landlord. For a 5-year lease at $3,000 per month, the total lease value is $180,000, and the broker commission would be $5,400 to $10,800. Because the landlord pays, tenants often assume the service is free, but the cost is ultimately built into the rent.

What is a tenant representation agent?

A tenant rep is a broker who exclusively represents the tenant's interests in a commercial real estate transaction. Unlike a listing agent who represents the landlord, a tenant rep works to find you the best space at the best terms. They handle the search, tour scheduling, lease negotiation, and paperwork. The challenge for small businesses is that tenant reps prioritize larger deals where their commission is higher.

Do I need a broker to lease industrial space?

No. There is no requirement to use a broker when leasing industrial space. Many small business owners find space on their own through online listings, direct contact with property owners, networking, and word of mouth. For straightforward leases with transparent pricing, like Trade Yards, going direct is often faster and simpler.

What are the advantages of using a broker?

Brokers have access to listings that may not be publicly advertised, market knowledge about fair pricing and terms, negotiation experience, and relationships with landlords. They can save you time on the search process and potentially negotiate better lease terms. For complex transactions involving large spaces, build-outs, or multi-location deals, a good broker adds real value.

What are the disadvantages of using a broker for small industrial space?

The main disadvantages are limited attention (small deals generate small commissions), potential conflicts of interest if the broker also represents landlords, a slower process because you are not the broker's top priority, and the fact that broker commissions are built into the rent you pay. For small, straightforward leases, the broker adds a layer of complexity without proportional benefit.

Trade Yards Victoria, BC - Working with Brokers and Tenant Reps for Industrial Space

When you start looking for industrial space, you will quickly encounter commercial real estate brokers and tenant representation agents. These professionals specialize in helping businesses find and lease commercial property. For large companies leasing 10,000 square feet or more, working with a broker is standard practice. But for small businesses looking for 1,800 to 5,000 square feet, the picture is more complicated.

The truth is that most commercial brokers focus on larger deals because their commission is based on the total lease value. A five-year lease on a 20,000 square foot warehouse generates a much larger commission than a one-year lease on a 2,000 square foot unit. This means small business tenants often get less attention, fewer options, and slower service. Understanding how the brokerage system works helps you decide whether to use a broker or find space on your own.

FINDING SPACE: BROKER VS DIRECT

Here is how to decide whether to use a broker or go direct for your industrial space search.

Use a Broker for Complex Deals

If you need a large space (5,000+ square feet), require significant tenant improvements, are negotiating a long-term lease with complex terms, or are unfamiliar with commercial real estate, a broker can add value. The larger the deal, the more attention you will receive.

Go Direct for Smaller, Simpler Leases

For spaces under 5,000 square feet with straightforward terms, contacting landlords directly is often faster and more effective. You get immediate answers, avoid the back-and-forth of broker communication, and can negotiate directly with the decision-maker.

Search Online Listings

Websites like LoopNet, Spacelist, and local commercial real estate sites list available industrial properties. You can filter by size, location, and price to find options that match your needs. Many listings include direct contact information for the landlord or property manager.

Contact Properties Directly

If you know the area where you want to lease, drive around and look for vacancy signs. Contact the property owner or manager directly. Many smaller industrial properties are not listed online and are only found through direct outreach.

Ask for Referrals

Talk to other business owners in your industry about where they lease space and what their experience has been. Personal referrals often lead to the best opportunities and give you insight into what it is actually like to be a tenant at a specific property.

Evaluate the Total Package

Whether you use a broker or go direct, evaluate each property based on total cost, lease terms, location, building condition, security, and flexibility. The best deal is not always the lowest rent. It is the space that best supports your business operations at a cost you can sustain.

TRADE YARDS VS TRADITIONAL INDUSTRIAL SPACE

See how Trade Yards simplifies industrial space for small businesses compared to traditional commercial leasing.

Feature	Trade Yards	Traditional Lease
Finding the Space	Contact us directly, no broker needed	Often requires a broker to access listings and negotiate
Negotiation Process	Transparent pricing, minimal negotiation required	Extensive back-and-forth negotiation, often through intermediaries
Commission Costs	No broker commissions built into your rent	3-6% broker commission built into the total lease cost
Speed of Process	Direct communication, fast decision-making	Broker adds communication layer, slowing the process
Attention Level	Every tenant matters, regardless of unit size	Brokers prioritize larger deals with higher commissions
Lease Complexity	Simple agreement you can review yourself	Complex lease requiring legal review and broker interpretation
Ongoing Relationship	Direct relationship with property management	Broker involvement typically ends after lease signing

Trade Yards

Direct relationship with property management

Traditional

Broker involvement typically ends after lease signing

SKIP THE MIDDLEMAN, GO DIRECT

For small businesses looking for industrial space in Victoria, going direct is often the smartest approach. You get faster answers, clearer communication, and a direct relationship with the people who manage your space. Trade Yards makes this easy with transparent pricing, simple terms, and a team that is focused on serving small businesses and trades professionals. No broker required, no commission costs, no unnecessary complexity. Just the space you need with the people who built it.

Should You Work with a Broker to Find Industrial Space?

MOST COMMON QUESTIONS

FINDING SPACE: BROKER VS DIRECT

Use a Broker for Complex Deals

Go Direct for Smaller, Simpler Leases

Search Online Listings

Contact Properties Directly

Ask for Referrals

Evaluate the Total Package

TRADE YARDS VS TRADITIONAL INDUSTRIAL SPACE

Finding the Space

Negotiation Process

Commission Costs

Speed of Process

Attention Level

Lease Complexity

Ongoing Relationship

SKIP THE MIDDLEMAN, GO DIRECT

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