Hi - I work for CBRE/C&W/Newmark/JLL and want to get a better understanding of how fees are split.
Assuming a $100 fee on a deal and 10% is taking off the top for business functions and to pay the analyst and associates.
The remaining 90% is split between origination and execution. Let’s say it’s 50/50 so $45 each.
My question is how much of that typically goes to the corporate PnL and how does that split work. Thank you!
Based on the most helpful WSO content, here's how fee splits typically work in such scenarios:
Corporate PnL Cut: The brokerage shop (CBRE, C&W, Newmark, JLL, etc.) generally takes a percentage of the gross fee before splitting it among the team. This cut can range from 10% to 50%, depending on various factors like the firm's policies, the size of the deal, and the negotiated terms.
Remaining Fee Split: After the corporate PnL cut, the remaining fee is divided among the team. In your example:
Team Distribution:
General Observations:
If you're looking for more specific details about your firm's exact policies, it might be worth discussing with your internal team or reviewing your employment agreement.
Sources: Let's Talk About Broker Compensation, Real Estate Profit Split - Friends and Family - LT Hold, Origination Fees on +$100MM Loans, Citadel Equities analyst terms, When does the promote split actually occur?
Generally the corporate/broker split is right around 50/50, and then the split among the brokers and other team members involved is at the discretion of the main broker and can vary team to team.
When I was in this world (almost 10 years ago at this point) the vast majority of brokers had a 50/50 split with the firm, except for a handful of rockstars who were able to negotiate better splits to retain them from jumping to another firm, but even then the splits were just like 45/55 and still close to 50/50
Then from the broker's 50%, they decide how to divvy it up among the people involved.
So as an example, lets say an office leasing broker gets the lead on a building for sale and sets up an office IS broker with the connection and helps them win the pitch for the business, and then that office IS broker and their analyst execute and sell the building for a $100 fee. The split would look something like:
$100 fee
$50 to the firm
$50 to be split among broker/team:
Office IS broker sends $15 to the leasing broker for the referral/helping win business, sends $3 to their analyst as a deal tip, pockets $32. (again, these % splits usually are not dictated by the brokerage, the individuals themselves figure out how to divvy it up themselves, brokerage just takes 50% and stays out of it unless there's a dispute that they need to step in and help resolve).
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