What is the commission going rate need pay to tenant's agent for Industrial leasing in Houston

In Leasing Property - Asked by Sherry K. - Oct 12, 2012
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Answer(s)

Robert H.
Broker/Agent
Metairie, LA

there is no set rate due to antitrust laws and everything is negotiable. For a lease value under $5 million each broker usually asks for a 3% fee. It is paid to the broker not the agent. You can also negotiate to pay it monthly for maybe a 4% fee but it needs to be paid whether or not the tenant fulfills the lease. You can also negotiate whether to pay renewals but most agents write this language into their offer. You need to spell all this out in a lease agreement. I can help you draft one if needed.

Oct 13, 2012
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Bobbi L.
Broker/Agent
Honolulu, HI

As an "Owner, Investor, Realtor", I can tell you I find that commissions are negotiable. In industrial and retail leasing; often the Tenant fails after the Realtor has procured them for the Owner and the Owner ends up empty handed after paying commissions. The most important thing is that you, as a Realtor, prequalify your Tenant; to be sure that you don't lose the opportunity to work with the property owner in the future and perhaps spoil your reputation by bringing unqualified Tenants. I am working with Realtors, and pay a courtesy to them; however; depending on each situation and the Tenant's qualifications; I have already worked with two Realtors whom I am having my CPA pay their commission out over the term of the lease. Best wishes to you !

Oct 18, 2012
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