Leasing broker vs. property manager for commercial retail space?

I am looking to lease a commercial space (mixed use building), would like advice on whether I should use our existing property manager, or, find a broker who specializes in commercial retail property. Also, what are the standard fees for commercial broker leasing? Thank you.
In Leasing Property - Asked by b g. - Apr 28, 2010
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Answer(s)

Rick G.
Broker/Agent
Edison, NJ

Depending on the market, use an experienced real estate broker in the area. Brokers are normally paid by the owner of the property. Good Luck

Apr 28, 2010
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Mark R.
Broker/Agent
Houston, TX

You need to have a commercial broker represent your interest, a property manager has a completely different skill set that is geared towards managing properties not negotiating leases, you will not be responsible for any fees associated with you retaining representation I can help if you like or I can answer any direct questions and I can be contacted at 713-828-0320 Mark Ray

Apr 29, 2010
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Juan G.
Broker/Agent
Ontario, CA

Retail is an entirely different skill set. Definately hire a retail specialist.
Fees vary per property. If its a difficult property and you are offering a low commission, do not expect a good broker to want to help you. Remember that commissions are less expensive than vacancy. Just look forward to between 4%-6% of the gross rents. You can ask to break it into payments, such as 50% now and 50% upon a certain milestone, like tenant opening for business or tenant paying rent for 6 months. Feel free to get creative, but remember that the further you delay payments, the less motivated people will be to bring you deals.

Apr 29, 2010
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Chris R.
Broker/Agent
Denton, TX

Unless the property manager is in a firm that also has experienced commercial retail leasing agents - then seek out commercial retail leasing agents/firms in the area of the property and engage one of them for this assignment. Property managers typically are not leasing agents - some are but most are not. Typical leasing fees would be in the 4 - 7% range as a commission for the gross rents of the term of the lease - typically paid up front - 50% at lease execution, 50% on move-in/rent commencement. All fees are negotiable between the parties involved - there are no standard fees throughout the industry - each party is free to set their own fees and negotiate with the other party.

May 30, 2010
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Theodore B.
Broker/Agent
Houston, TX

An existing property manager has the Owners best interests in mind as their employee. Additionally, a broker will also be able to research the market and compare options.

Jul 14, 2011
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