what is the customary commission paid on a industrial lease renewal?

In Property Management - Asked by Tom K. - Feb 13, 2013
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Answer(s)

Vince V.
Corporate Investor
St Louis, MO

Depending on the length of renewal term, 2-2.5 %.

Feb 13, 2013
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Rob B.
Chandler, AZ

Tom....
It is really against the law to quote "a customary commission", as all commissions are negotiable between the client and the agent!
Onward and Upward!
Rob Baird
rob@capratecommercial.com

Feb 13, 2013
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Marion V.
Broker/Agent
Chicago, IL

Anti-Trust laws prohibit real estate agents from discussing real estate commissions rates because it is a form of price fixing. Commission rates may be discussed within one's company to establish company standards, but no discussion between companies.

Feb 13, 2013
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Monica M.
Owner/Investor
Valencia, CA

Why would you pay a real estate agent any commission on a lease renewal when, by this time, you're dealing directly with the landlord/owner by now? I've been doing commercial leases forever and I've never found it to be "customary" to pay a commission to the original agent who leased me the property since, at the renewal period, the agent who leased me the property is long gone and out of the picture.

Feb 17, 2013
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Mike R.
Broker/Agent
Pensacola, FL

Tom, the Renewal Fee should be in writing on your Original Lease Agreement with the Broker!
There is No such thing as a Customary Commission for a Lease Renewal, Industrial or other type.

Feb 17, 2013
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Rob B.
Chandler, AZ

Tom.....
For the record, I respectfully disagree with Marion from Chicago. In many cases the property manager is also the leasing agent, and the terms for leasing are spelled out within the property management-leasing agreement.
In other cases, as Mike from Florida suggested, there are lease agreements written that do indeed have renewal clauses in them.
However, the underlying theme here is that all lease fees are negotiable and there is not a "customary commission", as expressed by several of us in our answers.
Onward and Upward....
Rob Baird
rob@capratecommercial.com

Feb 19, 2013
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Rob B.
Chandler, AZ

Tom....
Ooops..... It was Monica from Valencia, CA that I was "respectfully disagreeing with".
Onward and Upward!
Rob Baird
rob@capratecommercial.com

Feb 19, 2013
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Edna R.
Mcallen, TX

Tom is correct. All commission, on any type of real estate is negotiable. You can get into a bind when you start quoting, as they will always come up with, "well this agency will do it for this." Hence, don't quote. The commission should have been spelled out in the original agreement to avoid future conflict.
Edna Rodriguez

Feb 19, 2013
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