For anyone with knowledge can you ballpark the take home income for a heavy hitter that Leased 1 million sqft of office space on 42 deals? This guy was on the top of the list for my city and I cant believe these numbers. I am also not in the business so if someone could take a stab at what they think this guy took home after splits etc. The list also states that this is his portion of the deal only so this would reflect his portion of whatever team hes on.
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It is really difficult to estimate, especially if they work for one of the large corporate brokerages (like CBRE, JLL, CW, etc.). The reason is that those firms do corporate services deals with major tenants that basically funnel large parts of the gross commissions back to the tenants. Then the corp services team gets a cut of the remaining commission before the broker and the local mngt do their normal deals.
I know someone in a secondary market who works for CBRE, they basically described a major lease deal they did for McDonalds that would have netted him them like $100k after splits in normal world. But in the corp services world he got like $15-20k, but he had zero involvement in securing McD as a client. Just got an email, hey McD needs a new place in this part of town... and he did the rest.
A different person, office rep type, described it as like making a near guaranteed 200-350k in a given year (secondary market numbers), but if they were on their "own" they would make seven figures if they could keep same deals (but of course, they can't).
So, this person could be making 7 or 8 figures or whatever, or they could be just doing pretty well but not like crazy well. This is the reality of brokerage, the clients have the power. True on landlord and tenant side and especially investment sales. There is always a firm ready to outbid the competition to get the listing/assignment.
@redever Thanks for your input. This guy is CBRE most the heavy hitters in my market are CBRE JLL CW, but my market does have some boutiques that are major players.
$8,750,000. Depending on the market. Assuming $50 a foot rent, 10 year deals and 3.5% weighted commission (not including rent bumps) and 50/50 split with the firm. Why are you counting other peoples money though? not healthy.
Well @rasp I didnt count his money...you did. Stay healthy my friend.
You asked for a ballpark bud.
I have never seen a big-time office broker paid on the effective rent. Unless this guy is working for/owns a nobody brokerage in Anytown, USA, he's being paid on some variation of $/RSF x Term
In NYC standard tenant rep commissions net out free rent. Although it’s not the total effective rent counting TI/LC etc., it’s a form of effective rent.
Know some folks who have been on this list. In their "heavy hitter" years, they raked in $10-$20 mln after all the splits (i.e. split with the house and any co-brokers, and fee sharing arrangements with clients). This is a before tax figure though.
In Chicago, fees are $1.25 x RSF x # of Years... so you could do that calc for a gross number... the house probably takes half or maybe 40% in some cases, then splits with deal team brokers (I'd just divide by the number of brokers if they are all senior) and then you gotta pay the tax man... a few million a year is possible when deals are flowing. Depends (as stated above) on the type of work... Tenant Rep? Agency? Corp Solutions? Project Management?
Leasing can be extremely lucrative given the big fees. The guys who bring in the most fees on a consistent basis at CBRE, JLL, C&W are consistently on the leasing side of the business. Rumor has it Tara Stacom nets more than her sister. Its a lot less sexier than IS/DE given how much less analysis is involved but once you make it you really do make it. Much more of a grind at a lower level as well.
Huge survivorship bias as people look at leasing brokers pulling down big numbers. The rainmakers unsurprisingly kill it though, feast or famine business.
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