Commercial real estate commission in Ontario: sales and leases
Commercial real estate commission in Ontario isn't set by law: it's whatever the owner and the brokerage agree in writing. On a sale it's usually a percentage of the price; on a lease it's usually worked out on the rent over the whole term, plus 13% HST either way. Or list on MLS® for a flat fee from $69.99 a month and offer only a co-operating commission.
Updated October 8, 2026
How commercial commission is worked out
Commercial commission is negotiated deal by deal, and the agreement you sign with the listing brokerage sets it out. There's no standard rate in Ontario law: the Trust in Real Estate Services Act sets rules for brokerages and their agreements, not a rate, so the commission is whatever your written agreement says. These are the common ways it's expressed:
| Deal | Common ways to express it | Paid when |
|---|---|---|
| Sale | A percentage of the sale price, sometimes tiered (one rate on the first part, a lower rate on the rest), or a flat amount | On closing, from the proceeds |
| Lease | A percentage of the total net rent over the term, often a higher rate for the first years and a lower one after; or a dollar amount per sq ft per year of the term | As the agreement says, often when the lease is signed or the tenant takes possession |
| Renewal or expansion | Sometimes a further commission if the tenant renews or takes more space, if the agreement says so | As the agreement says |
Worked examples (illustrations, not standard rates)
The arithmetic is simple once the basis is clear: multiply the rate by what it applies to (the price, the rent over the term, or the square footage per year), then add 13% HST. The numbers below are examples to show the method, not typical rates; every deal sets its own.
A lease: 2,000 sq ft at $20 per sq ft per year net, for 5 years, is $40,000 a year and $200,000 of net rent over the term. At "4% of net rent years 1–5", the commission is $8,000, plus 13% HST ($1,040). At "$2.50/sq ft/yr of term", it's 2,000 × $2.50 × 5 = $25,000, plus HST.
A sale: a $1,000,000 building at a 2.5% co-operating commission is $25,000, plus $3,250 HST. With a full-service listing, the listing brokerage's share comes on top of that.
Run your own numbers before you agree to any basis, and ask what happens on a renewal or an early termination.
Who pays commercial commission, and how it's split
The owner (the seller, or the landlord on a lease) usually pays the commission, under the agreement signed with the listing brokerage. That brokerage then shares an agreed part with the co-operating brokerage that brings the buyer or tenant. On a sale it's typically settled on closing through the lawyers; on a lease, when the agreement says.
With a flat fee commercial listing, the split is simpler: you pay the brokerage a fixed fee for the listing itself, and you set the co-operating commission yourself. It's paid only to a brokerage that brings the buyer or tenant who completes; if they come with no agent, there's nothing to pay.
HST on commercial commission
Commission is a fee for a service, so 13% HST is charged on it in Ontario, on both the listing brokerage's share and the co-operating share, and on our flat fee too. That's why commercial commission terms usually end in "+ HST".
The sale price is a separate question. Unlike the resale of a home, the sale of commercial property is usually subject to HST, and how it's charged depends on the buyer; see CRA's GST/HST Memorandum 19-1, Real Property and ask your accountant. Our listing form asks whether HST applies to your price (Yes, No or Included) so buyers know.
The co-operating commission on a flat fee listing
On a flat fee listing with us, you choose the co-operating commission when you list, and it's always a firm, structured amount: never $0, and never "negotiable", "TBD" or "to be discussed". Agents decide what to show their clients partly on it, and the board requires it to be clear. On a lease, the written terms let you match how leasing commission is usually worked out, over the whole term (how to list a lease); on a sale, a percentage of the price is the usual choice (selling without a full commission).
Commercial listings can offer it three ways:
- A percentage: of the sale price (sale), or of one month's rent (lease), plus HST
- A flat amount, e.g. $10,000 + HST
- Commercial terms written out, up to 50 characters, e.g. "4% of net rent yrs 1-5, 2% after + HST" or "$2.50/sq ft/yr of term + HST". Whatever you write is exactly what's paid to a co-operating brokerage that brings you a buyer or tenant.
Commercial realtor fees vs a flat fee listing
A full-service commercial agent's commission pays for marketing, prospecting, advice and negotiation, and the agent shares part of it with the other side's agent. A flat fee listing pays only for the MLS® listing and its upkeep: from $69.99 a month or $99.99 for 2 months, plus HST, whatever the price or the rent. You still offer a co-operating commission.
On the lease example above, a full-service listing might mean a commission for the listing side as well as the tenant's agent; with a flat fee listing, it's the plan plus the co-operating amount you chose, and less if the tenant comes without an agent. Whether the full service is worth it depends on the property: see flat fee commercial realtor in Ontario.
How to negotiate commercial commission
Commission is negotiable at every brokerage, so compare written offers before you sign. Ask each agent for the rate and the basis (net or gross rent, first years only or the whole term), what's owed on a renewal, an expansion or an early termination, and how long after the listing ends a commission can still be claimed.
You can check any brokerage or agent on RECO's public register, and RECO's information guide explains the agreements you'll be asked to sign. This page is general information, not legal or tax advice; your lawyer and accountant can tell you how a particular agreement applies to you.
Questions
What is the typical commission for a commercial lease?
There's no set rate in Ontario. Leasing commission is commonly a percentage of the total net rent over the term (sometimes stepping down after the first years) or a dollar amount per square foot per year, plus HST. Compare the basis as well as the rate before you agree.
Who pays commission on a commercial lease?
Usually the landlord, under the agreement with the listing brokerage, which shares part with the tenant's brokerage. On a flat fee listing, the landlord pays the brokerage a set fee and offers its own co-operating commission, paid only if a tenant's agent brings the tenant.
Is commercial real estate commission negotiable in Ontario?
Yes. No law sets the rate; Ontario's Trust in Real Estate Services Act regulates brokerages and their agreements, not the price, so it's whatever you agree in writing. Ask for the rate, the basis and the renewal terms in writing, and compare more than one brokerage.
Is HST charged on commercial real estate commission?
Yes. Commission is a service, so 13% HST applies in Ontario, on every share of it. The sale price of commercial property is a separate question and is usually subject to HST too; ask your accountant how it applies to your sale.
Can I offer $0 to the buyer's or tenant's agent?
Not on our listings. The co-operating commission must be a firm amount above zero, never "negotiable" or "TBD". It's only paid if a co-operating brokerage brings the buyer or tenant who completes.
How much are commercial realtor fees in Ontario?
They vary by deal and brokerage, and they're always negotiable. A flat fee MLS® listing is a fixed alternative: from $69.99 a month, plus HST, plus the co-operating commission you choose.
What's included
- Your property on the MLS® System as a Commercial listing, through PropTx, which feeds TRREB and other Ontario boards
- Sent on to realtor.ca, where agents and their clients search commercial property
- The Type and Category you choose (Office, Commercial Retail, Industrial, Store W Apt/Office, Investment, Land, Farm) and the matching TRREB fields
- Up to 40 photos, your description, the price and the full property details
- Showing requests from buyers' and tenants' agents sent straight to you, and realtor.ca inquiries forwarded to you
- Price, photo and detail changes while you're listed, plus the sold or leased update
Flat fee MLS® prices
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|---|---|---|
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| 3-month Listing | $119.99 | You get the 6-month Listing, free |
| 6-month Listing | $149.99 | You get the MAX Exposure Listing, free |
| MAX Exposure Listing | $239.99 | — |
Plus 13% HST on Ontario listings; no tax on Alberta listings. The monthly plan can be cancelled any time.
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