Multiple Commercial Lease Commission & After Sale

[Khaled Seirafi]

So I have a vacant commercial space that's part of a mixed use building in San Mateo, CA. Would I be able to work out a deal with a listing agent that would allow me to pay the commission in multiple payments at the end of each year of a tenant's term? Seeing that times are uncertain and there's a risk to take on new tenants (especially in retail), I would hope that agents are open to that kind of arrangement. Plus, we're not expecting corporate tenants. 

My second question is if a listing agent does agree to a multiple payment schedule over the course of the term (let's assume it's a 5 year term) and I decide to sell the property 2 years into the term, who would pay the remaining commission? Would I be responsible or would the new owner be? 

Lastly, if I sign a lease with a tenant for 5 years with an option to renew for another 5, I'd only have to pay commission for 5 years of rent, right? If the tenant exercises the option to renew for another 5 years, is there a commission to be paid then?

[Joel Owens]

I have seen some leasing brokers sneak in paying money in options as well. Leasing brokers make very little money as it is and tons of work and negotiation to get a lease done.

They make say 15,000 on a 500k income lease for 5 years upfront but if not a principal broker they are likely sharing a big portion of the money as a split with their broker.

So imagine a property owner coming to you and saying ( You will only make 15,000 on this but now I want to pay it out over 5 years). 3,000 now and then the leasing broker has to be tied to that owner whether they like them or not for the next 5 years and hound for payment. I understand the risk factor with a mom and pop type tenant. Making payments over time to leasing broker can be a way to limit cost outlay upfront. It's all situational as to how well located the property is and if you have demand from multiple businesses to go into the space or is it very hard to rent out etc.