Who pays the broker's commission on a commercial lease?

Answer:  Commissions are paid in the lease transaction based on the representation of both parties:

1. After a lease is signed, the landlord and/or owner of the property usually pays a commission to the Listing Agent (or Landlord Rep) and the Tenant Rep.

2. Commission ranges may vary and can depend on the value of the transaction.

3. In terms of tenant rep situations, a tenant doesn't typically pay a commission to their rep - it is paid by the owner at the time the lease is executed unless otherwise negotiated.

Is there sales tax on commercial real estate?

FYI from Crandall Commercial Group!

Answer:  (from dor.myflorida.com) "The total amount of rent paid for the right to use or occupy commercial real property is subject to sales tax and applicable discretionary sales surtax, unless the rent is specifically exempt. If the tenant makes payments such as mortgage, ad valorem taxes, or insurance on behalf of the landlord, those payments are included in the total amount of rent paid and are subject to sales tax and surtax. The $5,000 limitation of surtax for tangible personal property does not apply to the lease, rental, or license to use commercial real property. Payments for separately stated services that are required under the lease or license are part of the total amount of rent paid.

Examples of commercial real property rentals:

• Office or retail space

• Warehouses

• Convention and meeting rooms

• Mini-warehouses

Rentals, leases, and licenses to use or occupy commercial real property by related persons, as defined in section (s.) 212.02(12), Florida Statutes (F.S.), are also subject to sales tax and surtax. For example, the lease of commercial real property by a parent corporation to one of its subsidiaries, or by a shareholder to a corporation, is subject to sales tax and surtax."

From the Crandall Commercial Group Education Center

 What is a CO, CC, and a Business Occupational License?

Answer: A Certificate of Occupancy (CO) is an official document issued stating the building conforms to government regulations and can be occupied. A Certificate of Completion (CC) is a document certified by an architect and/or an engineer stating the construction project has been completed in accordance with the terms, conditions, and specifications contained in the job contract. A Business Occupational License is a document required to legally conduct business in the state or county.