Tenant Kickbacks=Professional Prostitution?

Tenant Kickbacks=Professional Prostitution?

The words or terms used seem harmless.

Fee share, Sliding scale,Tenant concession,Tenant profit center,Redirecting,Discounting, Moving allowance,Reinvesting,Security deposit,Tenant improvements

Call it what you want.In the UK they call it at the very least bribery and illegal.


“Just a part of the way we have always done business around here.”

“It’s what I have to do to compete.”

“The deal was big enough and I wanted to keep the relationship in place for future business.”

“We see it as our strategy to discount earnings and therefore create (buy) market share.”

“It is how we pitch for business. We let the potential client know that they are getting the same quality service for less.”


Ask the landlord to agree to a commission amount and the other deal points in the LOI and then ask for 25% or whatever the amount agreed to be paid to a client is.Usually it becomes paid back in free rent normally although sometimes it may be given as TI dollars or even a moving allowance or similar type of concession.

A not for profit creates a specific entity to “hold” the property. A donation is made to that specific entity and is structured into the contract.

Using only language that states that all costs are “transaction costs.”

Telling the lender to “move “the number off the closing statement.

Standard commission is 4%  asking for 5% rebating 1% back. No paperwork required.

Many Questions.

Full disclosure  makes who exempt from liability?

The state licensing association does not legally allow it. Reworking the language is fraud?

A global corporate tenant uses it as an incentive strategy. Who can legally benefit?

Is it legal to actually structure it into the contract?

Not for profits or charities right or righteous same practice different bank account?

Negotiating the service of a broker into a commodity?

Cruel Reality.

Name another profession that practices business like this…….thinking….I will wait! Yes….. politicians…. and they go to jail!

You don’t value your work or profession why should your client. My attorney has NEVER given me one penny back.

Tenant Kickbacks=Professional Prostitution.

You can debate and justify all you want.

I have not and will never do it.

Your Thoughts?


Photo Credit:http://www.flickr.com/photos/construct/






Duke Long


  • Duke, great topic. Take it a step further and introduce landlord incentive trips: “hey, thanks for the business, let’s celebrate in Hawaii!”

    How willing is the broker to stand up for his current client when the landlord reminds him what a great time they had sitting around the pool drinking fancy umbrella drinks, golfing, and spa treatments? My guess is that broker will crumble like Georgetown vs. N.C. State. Most of these trips happen well after the deal is transacted so there’s no real need for your client to know that your “sun-kissed” face was even further reward for placing them in the landlord’s building.

    The American Medical Association claims a pharma company logoed pen laying around a physician’s office is enough to influence medical decisions. Imagine the influence created buddying around with a landlord for a weekend at a fancy resort as they pick up the tab.

    Instead ask the landlord to make a gift to your favorite charity in your name (I know, I know . . .”my favorite charity is me.”) Just a thought on how to differeniate.