Property Management Agreement - Fees

[Eric Weireter]

On your management agreement, how did you figure out what to charge for the flat fee if occupancy was not stabilized?

Currently, my agreement reads... Property Management firm should be paid X% of gross revenues for the Property for the month, or $XXX per month, whichever is greater.

How do you determine the second part (the minimum flat fee) you'd accept for managing the property if there was significant vacancy? Is it based on a price or rate per square foot?

Background: the properties I'll be managing are Class B multi-tentant office buildings.