Fixed-Fee Brokerage Gains Traction: $30M Deal Highlights Industry Shift

NEW YORK, NY – November 17, 2025 – A New Jersey-based commercial real estate brokerage is disrupting the industry with a fixed-fee model, recently arranging a $30 million credit facility for a New York-based real estate investment company. The deal, facilitated by GPARENCY, highlights a growing trend toward transparency and cost predictability in a sector traditionally dominated by commission-based structures.

Challenging the Status Quo

GPARENCY, founded in late 2021, operates on a ‘Mortgage Assurance’ model, charging a flat $4,500 fee for arranging commercial financing – regardless of the loan amount. This starkly contrasts with the conventional commercial real estate brokerage system where fees typically range from 1% to 8% of the transaction value, creating potential conflicts of interest. “The traditional model incentivizes brokers to maximize the loan size, not necessarily to find the best terms for the client,” explains an industry veteran who requested anonymity. “A fixed fee removes that incentive and focuses the broker on delivering value.”

The firm claims to arrange over $300 million in financing monthly, a claim substantiated by recent activity and the founder's established track record in the industry. While many brokers offer flat fee structures for smaller transactions or specific services, GPARENCY’s application to large financing arrangements distinguishes it within the market.

A $30 Million Success Story

In the recent deal, GPARENCY secured a $30 million credit facility for a private New York-based real estate investment company. Crucially, the firm negotiated the elimination of a $1 million deposit that was initially required by the lender, the New York office of OakNorth. “Eliminating that deposit requirement freed up significant capital for our client, allowing them to reinvest in other opportunities,” says a source familiar with the deal. For a loan of this size, a typical deposit could range from 10-40% of the loan value, making the elimination a substantial benefit.

The client, a private real estate investment company focused on commercial properties in the New York metropolitan area, was able to secure more favorable terms thanks to GPARENCY’s negotiating power and broad network of lenders. OakNorth, a digital bank specializing in lending to SMEs and property projects, has demonstrated a willingness to innovate and provide flexible financing solutions. The bank has a presence in the US and has a track record of providing loans to Manhattan-based real estate firms.

The Rise of Transparency and Predictability

The shift toward fixed-fee brokerage models is gaining momentum, driven by a demand for greater transparency and predictability in commercial real estate transactions. Traditional commission-based structures can be opaque, making it difficult for clients to understand exactly how much they are paying for a broker’s services. This lack of transparency can lead to mistrust and disputes. “Clients want to know exactly what they’re paying for upfront,” says another industry observer. “A fixed fee provides that certainty.”

Furthermore, a fixed-fee model can align the interests of the broker and the client, as the broker is incentivized to deliver the best possible outcome, regardless of the loan size. This can lead to more efficient and effective transactions, benefiting both parties. However, some argue that a commission-based structure rewards brokers for securing larger loans, which can be beneficial for the client in the long run. “There’s a trade-off between transparency and incentive,” explains a commercial real estate lender. “A commission-based structure can motivate brokers to work harder to secure the best possible terms for the client, but it can also create conflicts of interest.”

The emergence of GPARENCY and other fixed-fee brokerages is forcing traditional firms to re-evaluate their pricing models and consider ways to provide greater transparency and value to their clients. “The industry is at a tipping point,” says an industry analyst. “Clients are becoming more sophisticated and demanding greater transparency and value for their money. Firms that fail to adapt will be left behind.”

It remains to be seen whether the fixed-fee model will become the dominant force in commercial real estate brokerage. However, the recent success of GPARENCY and the growing demand for transparency suggest that this innovative approach has the potential to disrupt the industry and reshape the future of commercial real estate finance.