Is the leasing commission based on total rent BEFORE or AFTER TI allowance if TI given as rent credit? Thanks

In Leasing Property - Asked by Steven T. - Mar 20, 2013
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Answer(s)

Victor H.
Owner/Investor
Fairview, NC

it depends on what agreement you have with the list agent(s). commission is always negotiable.

Mar 21, 2013
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Linda A.
Broker/Agent
Scottsdale, AZ

it depends on the specific agreement with your brokerage firm, normally your commission would be calculated and based on total rent not including TI Credit

Mar 23, 2013
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Charlie B.
Broker/Agent
Rancho Cucamonga, CA

Typically owners do not pay commissions on rent they do not receive. It is good to get your clients credits which is part of the value as a representing agent of a lessee, but I would not expect commissions because technically the rent does not start until the payments begin.

Apr 7, 2013
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Glen W.
Lender/Mortgage Broker
Atlanta, GA

On the properties we own and manage, the broker does not get commission on the TI. The broker is paid on the value of the lease excluding the value of the TI. This is how I've always seen the TI question handled in markets throughout the country.

Apr 17, 2013
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