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Updated over 8 years ago,
Commerical Leasing Agent Commissions
I'm in the process of acquiring class A office space and have been comparing leasing agents proposals to market and lease the space. I've encountered something that I'm finding odd and I'm wanting to see other markets and investors are paying.
I'm getting proposals from professional commercial leasing agents in the range of 6%-8% of the gross lease (including estimated CAMs) along with ALL renewals. I've always used professional commercial brokers in my class B properties but the commissions were a fixed 6% of the gross lease and zero commissions for tenant renewals.
Is it standard course of business for brokers to expect a commission on tenant renewals now?