Short answer: in most Toronto and GTA office and industrial leases, the landlord pays the tenant rep broker's commission. Tenants typically receive full professional representation (strategy, market search, financial analysis, and negotiation) at no direct cost. The commission exists in the deal whether you use it or not.
How commercial leasing commissions actually work
When a landlord leases space, they budget a leasing commission as a standard cost of doing the deal, much like legal fees or tenant improvements. If the tenant is unrepresented, the landlord's own broker (or the landlord) keeps the full amount. If the tenant has their own broker, the commission is shared between the two sides.
This is why the most expensive option for a tenant is often having no broker at all: the cost is already priced in, but none of the representation flows to you, and you negotiate against professionals who transact in this market every week.
What a tenant rep actually does for that commission
- Builds the strategy around your business plan (headcount, budget, flexibility) before touring anything.
- Surveys the full market, including off-market and sublease options you won't find on listing sites.
- Models total occupancy cost across options: net rent, additional rent, free rent, improvement allowances.
- Creates competitive tension between landlords, the single biggest driver of tenant savings.
- Negotiates business terms through to lease execution, alongside your legal counsel.
Where the conflicts hide
The structural question isn't whether a broker gets paid. It's who else their firm works for. Full-service brokerages also represent landlords, sometimes the very landlord across the table. Cresa's model is different: the firm represents occupiers only, so there is no landlord relationship to protect. When you evaluate any broker, ask two questions: "Does your firm represent landlords in this market?" and "Exactly how are you compensated on my transaction?" Clear answers to both are the baseline for trust.
When tenants do pay directly
A small minority of situations fall outside the landlord-funded structure: some advisory-only engagements, certain renewals where no commission is offered, or consulting work like portfolio strategy. In those cases the fee is agreed transparently up front, before any work begins.
The bottom line
If your lease expires in the next 6 to 24 months, the market has already priced in the cost of your representation. The only question is whether you use it.
Your lease expiry is closer than it looks.
The best outcomes start 12 to 24 months out. A first conversation costs nothing and preserves your leverage.
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