Real estate commissions are negotiable, however, there tend to be typical commissions paid in each market. For lease transactions, a typical commission is 6% of the total value of the lease payments over the term of the lease. This commission is split with the tenant rep broker, if there's a tenant rep involved. For instance, a lease that's worth $100,000 annually for a 5-year term has a total value of $500,000. At 6%, the commission is $30,000. A typical commission for a sale transaction is 6% of the purchase price.
Apr 30, 2009