is a 7% broker commission on a nnn commercial lease in santa monica california atypical?

total term lease income is about $900,000
In Leasing Property - Asked by Michael H. - Jul 9, 2012
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Answer(s)

Keith R.
Broker/Agent
West Chester, PA

Depends, is commission upfront or over terms?

Jul 9, 2012
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Michael H.
Owner/Investor
Los Angeles, CA

The 7% commission is paid up front.

Jul 10, 2012
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Michael H.
Owner/Investor
Los Angeles, CA

The 7% commission is paid up front.

Jul 10, 2012
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Bill W.
Broker/Agent
Los Angeles, CA

Michael,
It will depend on the size and the type of property in which is being leased.

Jul 10, 2012
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Bill W.
Broker/Agent
Los Angeles, CA

Sorry Michael, I didn't catch the information under the question. For something with that type of income, 6% is usually standard.
Hope that helps

Jul 10, 2012
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Rob B.
Chandler, AZ

Michael....
Please be aware that there is no legal term, "standard commission". By law, all commissions are negotiable!
Onward and Upward!
Rob
rob@capratecommercial.com

Jul 10, 2012
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Tamas S.
Owner/Investor
Drexel Hill, PA

Hi Michael,
I closed on a similar property as far as the lease value, but in Central Pa, and I negotiated a 5% comission that was paid by the seller and split between my broker and the sellers broker.
Tamas

Jul 10, 2012
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Tamas S.
Owner/Investor
Drexel Hill, PA

sorry, just realized that the comission was for the lease. Sorry

Jul 10, 2012
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Victor C.
Property/Asset Manager
Los Angeles, CA

Typical broker commission on a NNN lease is 6%. 7% usually involves national credit tenants of which 4% is paid to tenant procuring broker. 5% is not unusual in high demand area.

Jul 11, 2012
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Michael H.
Owner/Investor
Los Angeles, CA

To be clear, NOI is about $900,000 and the 7% ($63,000) commission is paid in total at the start date of the lease.

Jul 11, 2012
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Michael H.
Owner/Investor
Los Angeles, CA

To be clear, NOI is about $900,000 and the 7% ($63,000) commission is paid in total at the start date of the lease.

Jul 11, 2012
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Michael H.
Owner/Investor
Los Angeles, CA

To be clear, NOI is about $900,000 and the 7% ($63,000) commission is paid in total at the start date of the lease.

Jul 11, 2012
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Michael H.
Owner/Investor
Los Angeles, CA

To be clear, NOI is about $900,000 and the 7% ($63,000) commission is paid in total at the start date of the lease.

Jul 11, 2012
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Chris S.
Broker/Agent
Coeur D'alene, ID

NO STANDARD
STANDARD = VIOLATION OF FEDERAL ANTI-TRUST LAW

Aug 1, 2012
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