Broker –the individual legally responsible for the real activities of the brokerage company

Agent – individuals who hang their license with a broker. Agents must hang their license and practice real estate three years in Georgia before they can sit for the brokers exam

Brokerage Team – usually in larger organizations but when several individuals work together to complete transactions

Listing Broker (Agent) – is the company that been legally hired through execution of a listing agreement to lease and/or the legal ownership entity

Asset Manager – Basically large consultants hired by large institutional ownerships to manage the value of their asset which includes selecting boots on the ground managing and leasing companies

Outside Broker (Agent) – In most transactions there are brokerage companies involved. The listing broker who represents the legal ownership entity and the outside broker who represents the tenant or buyer

Co-broker – typical the same as outside broker

Landlord (owner) – Legal ownership entity of a property

3rd Party Brokerage Company – non owners of property that will mange and lease properties for owners / landlords. Management fees are typically based on gross revenue in the door and based on a percentage of 3-5%

Construction Management Fees – fees paid to 3rd party companies for overseeing constructions projects they management and lease

Tenant Rep Broker/Agent – There are some brokerage companies and agents within companies that only represent tenants or buyers looking to lease or purchase space

Landlord Rep Broker - brokerage companies and agents within companies that only represent landlords/owners or sellers looking to lease or sell space. Both companies and individuals do both interchangeably

Dual Agency – when a company represents both sides of a Commerical transaction. The Georgia Real Estate Commission required you sign a form a provide to both sides of the transaction when this occurs

Over the Term Commission (Annuity) – A commission that is earned from completing a lease transaction that is paid over the term of the lease. The over the term structure is a percentage of the rental income that is paid and can vary depending on the market

Cash Out Commission – A commission that is earned from completing a lease transaction that is paid at execution of the lease or occupancy of the space in full

Sales Commission – A commission that is earned from completing a sales transaction that is paid on the closing date of the property

Profee/Procurement Fee - only available in Atlanta. The profee equals the first full month of rent a tenant pays when leasing space

Procuring Agent – the company in a lease transaction that brings the tenant (procures the tenant)

Over-ride Commission – when there are two parties involved in a lease the procuring company gets a full fee/commission and the listing broker (they could also be the procuring agent). However typically there is an outside broker and they are the procuring agent. The over-ride commission is typically ½ (50%) of the full commission

House Share/Split – The percentage of the commission the company keeps on each transaction

Agent Share/Split – The percentage of the commission each agent keeps on each transaction

Agent Split Plan - Agent and house splits which typically vary throughout the year based on the gross volume of the agent during the year

Finders/Referral Fee – is a fee offered to a non- licensed real estate agent or an agent not directly involved in the transaction for their contribution to the deal

Free Rent – one the main concessions provided by landlords to induce tenants to move into their properties

TI (Tenant Improvement Allowance) – the dollars a landlord is willing to spend and/or the competitive market requires a landlord to spend on tenants interior space

OPEX – Operating expenses – the total “all in” cost to run a property

CAM – Common Area Maintenance – the common area cost (lighting, landscaping, garbage) cost to maintain the property

Annual Escalation – the dollar or percentage a tenants rent increase on a annual basis

Million Dollar Club – is a designation that is awarded by the local commercial real estate organization or trade association

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