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Updated over 4 years ago on . Most recent reply

User Stats

125
Posts
29
Votes
Khaled Seirafi
  • Investor
  • Orange County, CA
29
Votes |
125
Posts

Multiple Commercial Lease Commission & After Sale

Khaled Seirafi
  • Investor
  • Orange County, CA
Posted

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?

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