what are average commissions on offices leases

In Leasing Property - Asked by Richard D. - Jan 27, 2012
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Answer(s)

Henry P.
Broker/Agent
New York, NY

Hi Richard,
Leasing any commercial space is very time consuming, as far as the average commission I can only speak for myself I usually charge 2 X the monthly rent.

Jan 28, 2012
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Ric M.
Broker/Agent
Dayton, OH

Standard in our market, if you use a listing agent is 6%. The listing agent will typically list the property within the MLS and offer half of the compensation or 3% to any buyer broker that will bring a tenant. The commission is usually based off the FULL VALUE of the lease for the initial term. Bear in mind that there are no hard rules but most agents are looking for these numbers and depending on the tenant's strength and the terms of the deal commissions might rise a few points.

Jan 28, 2012
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Randolph G.
Broker/Agent
Boca Raton, FL

The above answers are applicable if you have a mom-and-pop building. For better buildings in larger markets, the listing broker may get 3-5% of any new lease. If there is a cooperating (tenant) broker, then an over-ride may bump the commission up to around 7-8%, where the tenant's broker gets the majority (say 4-5%) of this split.
Also depends on net vs. gross leases as well as lease term.
Perhaps you can interview a few trusted brokers, and let them propose listing your building. The average commission will become clear.

Mar 24, 2012
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