Lease Commission and Retail Projects in a Commercial Real Estate Brokerage
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Sign up for this week's free webinars hosted by experienced investors or view previously-held webinar recordings in the Archives. Are you a wholesaler, a rehabber, a landlord, or even a turnkey investor? View all Local Real Estate forums. I'm about to get a lease renewed hopefully on a commercial property. I have a commercial brokerage negotiating the lease for me. Commercial lease broker fee rates may be a bit high, but if they can find and sign me a tenant, then I am willing to pay. The lease was also five years and Commercial lease broker fee rates did not want to lose out if the tenant bailed early.
I commercial lease broker fee rates him a pretty sizable portion the first year, then some the third year and the final amount the fifth year. I was only able to do this because I was already doing business with the broker. The problem is, I don't know if the brokers will like it.
It also depends on the quality of the tenant. Commercial lease broker fee rates the tenant is a huge company that won't ditch, it may be harder to convince broker. Just tell him you are in for the long haul and you want to establish a relationship.
We have a commercial lease broker fee rates on our team who was willing to take a note for part of his commission. We paid him off when we refinanced the property. As in so many areas of real estate typical doesn't typically apply. CRE lease commissions tend to vary depending on where the property is located across the nation. You mention you're working on a lease renewal so immediately the question that comes into play is does the originating brokerage have claim to a renewal commission?
The next question is why are you being represented by a brokerage on a lease renewal? If its because you're unfamiliar with CRE leases, I get it. However, the pure essence of having a broker involved means you're opening up a commitment to pay when you could have eliminated the need to pay any commission by representing yourself with an existing tenant.
Pay the fee and move on. Here's why, the tenant already exists at the property which means the property owner has already accepted the tenants credit worthiness to lease the property if you're a subsequent new owner you had a chance to review credit during your due diligence, if you didn't then that is on you.
Leasing brokers will try to get it sooner but it's not great practice to do so. If tenant is a franchisee or mom and pop then you want a tiered structure. You could try to decrease the number of years to 1 or 2 and then have rent increase in options where there is no leasing commission if you negotiated correctly. Mom and pop extract the increase every year. Are they renewing a lease on an existing tenant? I would think 2. If you signed up for BiggerPockets via Facebook, you commercial lease broker fee rates log in with just one click!
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Properties For Sale Buy commercial lease broker fee rates sell real estate deals or seek out partners, financing, etc. Get the book now. Real Estate Books Shop books covering commercial lease broker fee rates estate investing and personal finance. Real Estate Forms Leases and other legal documents for landlords. Log In Sign up. Have a great day! Podcast Guest on Show Originally posted by Gino Barbaro: Thanks for the advice! Ryan Rogers The problem is, I don't know if the brokers will like it.
The lesson is You never know unless you ask Gino. Originally posted by Christopher Telles: I appreciate your thoughtful response! It helped a lot! Ryan, Are they renewing a lease on an existing tenant? Originally posted by Mark Creason: Log in Sign up. Log in Email Password Forgot password?