A leasing commission, or LC for short, is a fee paid by a

commercial real estate Commercial property, also called commercial real estate, investment property or income property, is real estate (buildings or land) intended to generate a profit, either from capital gains or rental income. Commercial property includes office bu ...

landlord A landlord is the owner of a house, apartment, condominium, land, or real estate which is rented or leased to an individual or business, who is called a tenant (also a ''lessee'' or ''renter''). When a juristic person is in this position, the ...

to a

real estate broker A real estate agent or real estate broker is a person who represents sellers or buyers of real estate or real property. While a broker may work independently, an agent usually works under a licensed broker to represent clients. Brokers and agen ...

in exchange for introducing a

tenant Tenant may refer to: Real estate *Tenant, the holder of a leasehold estate in real estate *Tenant-in-chief, in feudal land law *Tenement (law), the holder of a legal interest in real estate *Tenant farmer *Anchor tenant, one of the larger stores ...

that successfully completes a lease with the landlord. It is normally paid in the form of a percentage of the tenant's yearly rent. LCs are often lumped with

tenant inducement In commercial real estate, a tenant inducement (TI) is some sort of consideration given by a landlord in order to attract a new tenant Tenant may refer to: Real estate *Tenant, the holder of a leasehold estate in real estate *Tenant-in-chief, ...

s as part of an overall cost-of-business line item in the accounts. For this reason, it is common to see references to "TI's and LC's".

References

* {{Realestate-stub Commercial real estate