You do not legally need a realtor to lease commercial space in Surrey, but having your own representative usually costs a tenant nothing directly. In most commercial leases the landlord pays the leasing commission under its listing agreement with its brokerage, and that commission is shared with the brokerage that brings the tenant. The exact amount and who pays it are set by contract, so always confirm it in writing before you start touring units. This article explains how the fee works, what a tenant's representative does for you, and when going without one makes sense. For available space and leasing help, see our page on commercial space for lease in Surrey.
Who pays the realtor when you lease commercial space?
In the usual arrangement, a landlord signs a listing agreement with a brokerage to find a tenant. That agreement sets out the commission the landlord will pay when a lease is signed, and often how much of it will go to a cooperating brokerage that represents the tenant. When you arrive with your own realtor, the landlord's commission is split between the two brokerages. When you arrive without one, the landlord's brokerage typically keeps the full amount.
There is no rate fixed by law. The commission is negotiated between the landlord and its brokerage and is often calculated on the rent over the lease term, so longer and larger leases produce larger fees. Because the money comes from the landlord's leasing budget, many tenants never see an invoice.
There are exceptions. A space may be offered directly by the owner with no listing brokerage, a landlord may refuse to pay a tenant's agent, or you may ask a realtor to find space that is not on the market. In those cases you and your realtor agree on a fee in a written tenant representation agreement before the search begins.
Does using a realtor make my rent higher?
Usually not. The landlord's budget for the deal, including commission, is generally set when the space is listed. If you approach the landlord's agent on your own, the commission often stays with that brokerage rather than being returned to you as lower rent. The more useful question is whether you will get better terms with someone working only for you.
What is the difference between a tenant rep and a landlord rep?
The realtor named on the sign or the listing works for the landlord. Their duty is to lease the space on terms the owner wants. They can be helpful and professional, but they cannot advise you on how to push for a lower rate or a better allowance.
A tenant representative works for you. In BC, licensees must disclose in writing who they represent before they provide services, and one licensee generally cannot represent both sides of the same deal. Ask any realtor you speak with which side they are on, and get it in writing.
What does a tenant representative actually do?
Builds the requirement with you
Before touring anything, a good representative sits down with you and turns your business plan into a written requirement: approximate square footage, the zoning or permitted use you need, power, loading, ceiling height, parking ratio, frontage and the parts of Surrey your customers and staff can reach. That requirement keeps the search short and stops you falling for a unit that cannot legally host your business.
Finds and compares options
Your representative searches listed space, contacts landlords directly and hears about units before they are advertised. They then lay out each option on the same basis, so you are comparing the full monthly cost, the lease length and the incentives side by side rather than headline rent alone.
Negotiates the offer to lease
Most commercial leases in BC start with an offer to lease, a shorter document that sets the business terms before the full lease is drafted. This is where most of the value is won or lost. Your representative negotiates items such as:
- The rent per square foot and how it increases over the term.
- Any rent-free or reduced-rent period while you build out.
- A tenant improvement allowance or landlord work before possession.
- Options to renew or extend, and how renewal rent will be set.
- Exclusive use, signage and parking rights.
- The scope of any personal guarantee and whether it can be capped or reduced over time.
- Conditions such as financing, permits and your lawyer's review of the full lease.
Coordinates through to possession
After the offer is accepted, your representative keeps conditions on schedule, works with your lawyer on the lease document, and checks that the possession date, fit-out timing and rent start date in the lease match what was agreed.
When might you lease without a realtor?
If you are renewing your current space and know the market well, or you are taking a small unit for a short term from a landlord you already know, you may decide to deal directly. Even then, have a lawyer review the lease before you sign it. A lease is a long-term financial commitment, often personally guaranteed, and it is far easier to change the terms before signing than after.
What questions should you ask a leasing realtor?
- Do you represent me or the landlord on this space?
- How will you be paid, and will the landlord pay that fee?
- Will you show me space from every landlord, including units not advertised?
- Which commercial leases have you handled in Surrey, and for what types of business?
- How will you compare the total cost of each option, not only the base rent?
Should you be leasing at all?
For established businesses, the leasing conversation often leads to a bigger one. If you have been in business for several years and expect to stay in Surrey, owning your premises may cost a similar amount each month and build equity at the same time. Some lenders offer financing of up to 100% of the purchase price for qualified owner-occupied buyers, subject to approval. Read more about how to buy property for your business.
How The Oberoi Group helps tenants and landlords
Our commercial team works with tenants searching for retail, office and industrial space across Surrey, White Rock and the Fraser Valley, and with landlords who need their space leased. We were named a Top 3 Commercial Team across Canada at RE/MAX in 2025, based on commission. Tell us what your business needs on our Surrey commercial leasing page and we will explain up front who pays our fee.
Frequently asked questions
Who pays the realtor when a business leases commercial space?
Usually the landlord. The landlord's listing agreement sets a leasing commission, and that commission is normally shared with the brokerage that represents the tenant. Confirm the arrangement in writing before your search starts.
Will using a tenant rep increase my rent?
Usually not. The landlord's leasing budget, including commission, is generally set when the space is listed. If you go direct, the commission often stays with the landlord's brokerage rather than reducing your rent.
Can the landlord's agent represent me too?
Generally no. In BC, one licensee generally cannot represent both sides of the same deal, and licensees must disclose in writing who they represent before providing services.
What does a tenant representative negotiate?
Rent and increases, rent-free periods, improvement allowances, renewal options, signage, parking, exclusive use and the scope of any personal guarantee, usually in the offer to lease before the full lease is drafted.
When would I pay a leasing fee myself?
If the space has no listing brokerage, the landlord will not pay a tenant's agent, or you want a realtor to find space that is not on the market. Agree the fee in a written tenant representation agreement first.
Do I still need a lawyer if I use a realtor?
Yes. Your realtor negotiates the business terms, and your lawyer should review the full lease, especially any personal guarantee, before you sign.
Sources
Rates, thresholds and program rules in this article were checked against these official pages on October 14, 2026. Rules change, so confirm current details before you act.