That depends on if you want to have a good tenant or spiders spinning webs on your building. Normal rates are 6%(we are getting 8% at difficult listings in saturated markets), Half at lease execution and half at Opening for business. I am a Landlord Rep so I will be very blunt with you. Tenant's brokers will not out up with landlords crap when they offer low commissions. For example if someone is representing a fast food franchise and you are paying a total of 4% commission paid over the lease of the term, the tenant broker will take his client down the street to one of the thousands of available spaces and you will sit there with your empty building, blaming others for "the bad Market".
In this market, good landlord representatives will ask for a retainer as we can spend hundreds marketing your property upfront. Offer the actual agents, especially the junior agents who are actually doing the legwork a bonus.
Oct 31, 2008