Your question is interesting. I must start with the standard caveat, "commissions are always negotiable". Now I can address the question. Generally, commission rates will be the same for gross office rents as they are for nnn rents. This will range somewhere in the neighborhood of 3% per side on five year leases. A higher amount is often charged for shorter leases. The commission schedule can be presented in several variations but in the end will work out to about that amount for a five-year term. We always hope for more and measure our clients by the opportunity, the quality of the property, the location and the costs of representation to arrive at a negotiated amount.
There is often an unfairness in a gross office lease and a nnn lease commissions, in that the owner on an nnn lease, usually wants to pay the commission based on the value base rent and not the pass through costs for nnn. In the gross lease these costs are in the total rent charged and unless the owner is really sophisticated there will not be an adjustment on the commission to NOI.
Onward and upward Melissa..... Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: email@example.com
Apr 21, 2011