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Tenant Representation Compensation in California
How Broker Compensation Works
In California, commercial real estate brokers owe a fiduciary duty to the party they represent. Landlord brokers are paid by ownership and are legally required to act in the landlord’s best interest. When a tenant has no independent representation, the landlord’s broker typically retains the full commission.
This structure ensures tenants receive representation when evaluating a lease renewal or negotiating a new lease, without increasing overall cost.
Why Tenant Representation Does Not Increase Cost
Tenant representation removes this imbalance. Tenant brokers are compensated from the landlord’s commission pool at standard market rates and are paid only upon completion of a transaction. When a tenant broker is involved, the landlord broker’s share is adjusted accordingly.
There is no additional cost to the tenant for representation.
Conflict-Free Advice for Tenants
Because Shelton & Associates represents tenants exclusively and never landlords, every recommendation is aligned solely with the tenant’s interests. This structure ensures objective guidance and stronger lease outcomes.
We represent tenants across markets including San Diego, Orange County, and Los Angeles.
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