What is the typical commission on a NNN lease, Office space. How about multiple years?

In Leasing Property - Asked by Rich K. - Jan 17, 2011
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Answer(s)

John S.
Broker/Agent
Oviedo, FL

Commercial lease commissions are negotiable but typically average 3% of gross base rent.

Jan 18, 2011
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Mari R.
Listing Administrator
Naperville, IL

It depends, the most typical used to be 8/3/3 which means 8% of the initial year gross rent and 3% for the following years.
Now a days with trying to get more deals done you can ask for at least $1.00 PSF per Year in lease term which is very reasonable. You will find Landlord Rep Brokers that even pay out $1.25 psf per year of lease, some even provide you with bonuses.

Jan 18, 2011
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Rob B.
Chandler, AZ

Rich....
Typical rates will vary from region to region and from sub-market to sub-market. They will also be influenced by the type of property involved and the urgency of demand. My suggestion would be to review properties for lease in your area that are similar to the property for which you are searching for an answer to your commission question. Then call the listing agents on these properties and find out the cooperative commission that is being offered. This is usually a standard 50% of the entire commission for the lesseeā€™s representative. From this information you will begin to see a pattern for the type of property, the type of market, the location and other salient points for the space. You can then apply the results of your analysis about commission rates to your own negotiations with an owner. Good luck Rich....... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

Jan 18, 2011
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