As a commercial property manager myself, my experience has been that my company earns a set percentage of the total collected revenue (of any type including CAM reimbursements, late fees, etc). As the manager working for the mgmt company, I then negotiate my salary based on the city I live in and most importantly, in my opinion, my experience. A trained, experienced property manager makes a huge difference to an owner's bottom line and should be compensated well. On the other hand someone with limited experience may not contribute as much. For commercial management of retail or office buildings, I think a good base is $40,000 per year. Then anything above that is due to experience and special expertise. I believe that a manager of commercial property should be paid a base salary with leasing fees being a separate thing entirely. If there is no separate leasing agent for the property managed, the fee is usually piad as you would any other agent but is often split 50/50 with the house since the manager already earns a base salary. If there is a co-broker involved, a different split can be negotiated. If tenants continually move or seem hesitant to renew leases, that's sometimes a sign the manager isn't a good one. Quick response, concern for a tenant's issues, and knowledge of the physical aspects of a property are very important for commercial management. Hope this helps.
Nov 14, 2012