what is proper commission on commercial building {lease}

In Leasing Property - Asked by douglas h. - Apr 29, 2011
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Answer(s)

Raudel G.
Mcallen, TX

It's all negotiable. Many factors contribute to how a broker establishes a commission for a property: size of building, length of lease, time on market, broker's marketing expenses, standard practice for the brokerage firm, and so much more. Are you the building owner? If so, try soliciting a couple of brokers in your area and see what they will do for your particular building.
Are you the agent or broker? Take all the factors above into account and determine your commission.
Hope that helps.

May 2, 2011
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Rob B.
Chandler, AZ

Douglas....
There is no "proper commission on a commercial building lease". You should work with a really competent, professional, commercial real estate broker.
He or she will let you know what will get the job done for you, taking all things into consideration, such as:
1. location, type of property
2. condition of property
3. vacancies in your building
4. vacancy for your type of building in the competing market
5. the costs of marketing your property
Only then will a commission be quoted and you can then try to negotiate with the individual. However, if he or she has done the type of research that it takes to analyze your property, they will not likely budge a great deal from their quote.
Onward and upward Douglas... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: rob@capratecommercial.com

May 2, 2011
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Chris R.
Broker/Agent
Denton, TX

All commissions are negotiable and vary from region to region around the country. In the Dallas area - typically a broker bringing a tenant to the table will be looking for 4 to 4.5% of the gross amount of the initial term of the lease. That can be adjusted for various reasons, conditions, etc. such as length of term of the lease and other factors. You should contact active commercial agents in your area to find out what is typical for that sort of service. You definitely want to be fair and competitive.

May 2, 2011
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