I have always questioned the ethics of the person who wants to "get into my pocket". It seems that one should be respected for the talent and knowledge that he or she brings to the profession being practiced.
However, it is not uncommon for those who bring something to the party to expect a bit in return. With the "party" we call leasing, I have always followed a simple rule. I treat everything as a referral. In providing fees for qualified opportunities, I never give more than 20% of my commission to anyone for a referral.
It then depends on what the value of the referral is. In most cases the person must make a contribution to the complete development of a completed transaction. The value of "a name" has no value to me. However, if it is a well qualified name it has great value. Also, if the individual is helping to do something to ease the transaction through the process, it has maximum value.
In answer to your specific question, the credit tenant is bringing itself to you as a referral. It would then be a matter of the length of the lease renewal and the amount of negotiating that I had to undertake to get the very best lease terms for the client. It is likely with a lease renewal of three years of more that I would give a 20% "referral" fee to the credit tenant. Particularly if in the event we could not negotiate a good renewal package for it that the credit tenant would allow me to take him to a different location.
Onward and upward Michael... Rob Baird
Jun 17, 2011