what is comm agent's commission on a typic lease

i.e. if an agent leases a space for $ 1,000 mo on a 3 yr lease....is their % based on the total $value of the lease $1000 x 36 = $36000 x %(commission )
In Leasing Property - Asked by mike s. - Sep 15, 2016
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Answer(s)

Russ S.
Broker/Agent
Irvine, CA

Leasing commissions are paid based on the total lease consideration. In your example above...
$1,000 / month for 36 month (3 year lease) = $36,000 in consideration.
In Orange County, CA, typical leasing commission is 5-6% of the lease consideration but your market might be different.
$1,800-$2,160 in commissions in this example.

Sep 16, 2016
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Justin B.
Broker/Agent
Greenville, SC

Commission is always negotiable so the example above you used could be how its set up or it could be based on owners net from lease or could be flat rate.

Sep 16, 2016
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Previn S.
Property/Asset Manager
Farmington Hills, MI

Typically, the answer is to your question is yes. Brokers and Agents are usually paid on the entirety of the lease agreement, which makes your example correct.
Here in Michigan it is usually 6% commission on any real estate transaction (some exceptions when dealing with higher end or industrial properties).
Like Justin B. stated though, it is always negotiable between the broker and lessor.

Sep 21, 2016
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Simon C.
Broker/Agent
New York, NY

In New York City, commission is based on a Lehman Scale.
Wikipedia: The Lehman Formula, also known as the Lehman Scale, is a formula to define the compensation a bank or finder should receive when arranging for and handling a large underwriting or stock brokerage transfer transaction for a client. The formula usually applies to the entire value of the stock.

Dec 12, 2016
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