Hello, Is it common to pay a commision on a lease extension...if so, is it paid at the same rate??Thanks, Jim

In Leasing Property - Asked by Jim M. - Jan 24, 2011
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Answer(s)

Michael E.
Broker/Agent
Houston, TX

Commissions on lease extensions are common but your obligation to pay one will ultimately be determined by your listing agreement. Reread your listing agreement and find out whether you are subject to this commission. If you are required to pay a commission, the payment on the extension will be based on the tenant's current rate.

Jan 24, 2011
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Ron B.
Broker/Agent
Denton, TX

It is very common in commercial real estate for the agent that placed the tenant in the property to receive a commission for a lease extension. As in call cases - commissions are always negotiable between the owner and the agent / broker involved. Often times - commissions for lease extensions / renewals / additional space, etc. is covered in the original listing agreement. If such is not the case - then - again - negotiable. Often times in the market place we find that renewals are less than the original commission - ie: if the original commission was - say - 4.5% - a renewal would be paid on 2.25%.

Jan 24, 2011
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Amos P.
Broker/Agent
Fremont, CA

It is commonly asked for but mostly negotiated.
Most important not to let that commission extend beyond ones' ownership, when the property is sold. It will effect the value just like any other imposed financial obligation.

Jan 24, 2011
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Amos P.
Broker/Agent
Fremont, CA

It is commonly asked for but mostly negotiated.
Most important not to let that commission extend beyond ones' ownership, when the property is sold. It will effect the value just like any other imposed financial obligation.

Jan 24, 2011
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