A commercial real estate deal involves more people than most new investors expect. Knowing who's who — and how each one gets paid — helps you negotiate smarter, pick better partners, and avoid the kinds of misalignment that kill deals.

The principals

1. The buyer / investor

The person or entity taking ownership. Can be an individual investor, a family office, a syndication, a REIT, a pension fund, or a development company. Their goal: make a return on their capital.

Sub-categories you'll encounter:

Individual investor — buying in their own name or a single-asset LLC
Owner-user — a business buying the property it will operate from
Syndicator / sponsor — raising capital from multiple passive investors
Institutional — REIT, pension fund, insurance company, private equity fund

2. The seller

Whoever currently owns the property. Could be a tired landlord, an estate in distribution, a developer delivering a newly built building, or a REIT trimming its portfolio. The seller's motivation matters enormously — it's the single biggest negotiating lever.

3. The tenant

The business paying rent. On a single-tenant NNN property, the tenant is the deal — the property is worth whatever their credit is worth. On a multi-tenant property, tenants are a portfolio to be managed.

4. The developer

The person who takes raw land or a tear-down and delivers a finished commercial building. Developers can also be the investor/owner on completion, or they can sell to a permanent owner on delivery (a build-to-suit). MaxLife Development plays both roles.

The intermediaries

5. The listing broker

Represents the seller. Markets the property, fields offers, and negotiates on the seller's behalf. Gets paid a commission by the seller at closing — typically 2–6% of the sale price, depending on size and asset class.

6. The buyer's broker (or "buyer rep")

Represents the buyer. Sources deals, underwrites them, negotiates price and terms, and quarterbacks the closing process. On most commercial deals, the buyer's broker is paid out of the seller's commission (the listing broker splits with them) — meaning the buyer pays nothing out of pocket for representation.

This is the single biggest under-used advantage in CRE: a buyer's broker is usually free to the buyer but adds enormous value on deal sourcing, negotiation, and market knowledge.

7. The loan broker (mortgage broker)

Shops the deal to multiple lenders to get the best terms. Gets paid a fee at closing — typically 0.5% to 1% of the loan amount, sometimes paid by the borrower and sometimes baked into the loan. Essential on deals over $5M where the lender landscape is complex.

The financiers

8. The senior lender

Provides the largest chunk of the capital stack — usually 55% to 75% of the purchase price. Types include:

Banks — relationship-driven, flexible, often recourse
Life insurance companies — long-term fixed rate, very conservative
CMBS lenders — securitized loans, aggressive proceeds, rigid terms
Agency lenders (Fannie/Freddie) — multifamily only, best rates in the market
SBA — owner-user only, up to 90% LTV via SBA 504 or 7a
Bridge lenders — short-term, higher rates, for value-add deals in transition

9. The mezzanine lender / preferred equity

Fills the gap between senior debt and common equity on larger deals. Expects 10–15% returns. Not used on small deals.

10. The equity partners

The passive money behind a syndication — family, friends, accredited investors. They put up cash, receive a preferred return and a share of profits, and don't make decisions.

The advisors

11. The real estate attorney

Reviews purchase contracts, drafts LOIs, negotiates lease language, handles title issues, and closes the deal. On a typical $5M deal, expect $5,000 to $15,000 in legal fees. Never, ever skip the attorney.

12. The CPA / tax advisor

Structures the ownership entity, plans the depreciation schedule, handles 1031 exchanges, and advises on cost segregation studies. Your CPA is the single most important professional relationship in your CRE career after your broker.

13. The title company / closing attorney

Issues title insurance, handles closing funds, and records the deed. Paid by the buyer through the closing statement — typically 0.3% to 0.6% of the sale price.

14. The appraiser

Values the property for the lender. Commercial appraisals run $3,000 to $15,000 depending on complexity. The lender orders the appraisal; the borrower pays for it.

15. The inspectors and consultants

Physical inspectors (PCA — property condition assessment), environmental (Phase I ESA), survey, zoning review. Collectively, due diligence costs run 0.5% to 1.5% of the purchase price on a typical deal.

The operators (after closing)

16. The property manager

Handles day-to-day operations — collecting rent, dealing with tenants, coordinating repairs. Typically paid 3–8% of collected rent depending on asset class and size. Multifamily is higher; NNN retail is often zero (no management needed).

17. The asset manager

Higher-level than a property manager. Makes strategic decisions: when to refinance, when to sell, when to raise rents, when to renovate. On small deals, the owner is the asset manager. On larger deals, it's a dedicated role.

18. The leasing broker

Finds and signs new tenants. Typically paid by the landlord — 4–6% of the lease value on small deals, lower on large deals.

The government

19. The municipality / planning department

Controls zoning, entitlements, permits, and certificates of occupancy. In development deals, the municipality is effectively your business partner — you cannot succeed without their approval.

20. The tax assessor

Sets the property's assessed value and therefore its tax bill. On large deals, appealing the assessment can save six figures a year.

How to use this

A new investor doesn't need to assemble all 20 players for a first deal. For a simple NNN purchase, you might engage:

A buyer's broker (free to you)
A real estate attorney
A lender (or a loan broker)
A title company
An inspector and a Phase I environmental consultant
A CPA

Six people. That's a real deal team. Everyone else comes in at larger scale.

What to take away

A CRE deal has more moving parts than a residential transaction, and each player has their own incentives.
A buyer's broker is almost always free to the buyer — use one.
Your CPA and your real estate attorney are the two most important relationships you'll build in CRE.
The lender landscape is varied — banks, life companies, agency, CMBS, SBA, bridge — and the "best" lender depends entirely on the deal.
On your first deal, you only need ~6 professionals. Don't overbuild your team.

Next lesson: how do commercial real estate investors actually make money? The four ways profit flows to an owner.

The Players in a CRE Deal