When commercial leases renew is it typical for the Broker to receive a commission?

I've got several 3 and 5 year lease terms coming up for renewal. If the tenant decides to renew for an additional 5 year term should I expect to be compensated as in the original lease agreement? I'm unfamiliar with any typical protocol under these circumstances.
Thanks for any input.
In Leasing Property - Asked by Brandon W. - Mar 1, 2014
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Reza J.
Rancho Santa Fe, CA


Mar 1, 2014
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Eric R.
Encino, CA

It depends if payment of commission on options for extension was negotiated into the original lease and/or the listing agreement for the property.

Mar 1, 2014
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Laraine S.
Chicago, IL

Yes, if the contract had a clause covering renewals. No, if it did not.

Mar 2, 2014
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John P.
Glen Burnie, MD

The Lease "Option Period" only guarantees the tenant may stay (continue) at the property. It does not guarantee any rent or lease terms will continue.
The Tenant (your former client), needs your call prior to his/her "Notification" period so you can inquire about their need for your services. If they do, sent your "Client Representation & Co-Broker Compensation" document to the Landlord or Property Management company for approval.
If the Landlord or Prop. Mgmt refuses, ask your Client the tenant to compensate you at a % or flat fee..
Even if your fees are protected from the original lease, you still must arrive back on the scene at the appropriate time to secure your position (maybe a new property management Co.) and lend a hand to your client. You knew that though--right?

Mar 4, 2014
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Bert W.
Austin, TX

I cannot add anything new, the above comments have adequately answered the question. In summary YES if it was agreed upon either in the original lease or at the time of renewal. Otherwise, NO if there is no written evidence.

Mar 4, 2014
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Jennifer A A C.
Morris Plains, NJ


Mar 5, 2014
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Paula C.
Oxford, MS

Usually there is a Lease Commission Agreement signed at the time of the original term of commercial leases or commission details should be included in the lease agreement. Often times a Letter of Commission is included separately with the Leasing Agreement. So, it all depends upon how these potential documents were agreed upon upfront.

Mar 6, 2014
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Ontario, CA

I take it you did not write the initial lease if you are unfamiliar with compensation?
Do you have an extension provision in the lease? What does it say RE Compensation?
If so is it at FMV ?
State laws also vary.
Nathan Bragg
Managing Director RE/MAX Time Commercial Division
Industrial | Commercial | Investment Real Estate
Chairman's Club Member
10535 Foothill Blvd., Suite 100 Rancho Cucamonga, CA 91730
Serving the Inland Empire and East Los Angeles County Markets

Mar 18, 2014
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W.C. W.
Quakertown, PA

Check your listing contract. . . . everything is negotiable.

Mar 19, 2014
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Nathan D.
Yucaipa, CA

Yes, I agree with John P., below. Usually the lease commissions are 5-6% for the base terms of the lease and 2-3% of the 1st option to renew. If you did not negotiate this up front before the lease was executed than the commission you seek may be impossible to obtain.

Jul 8, 2014
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