Broker shenanigans

[Joe Lee]

Hello,

After extensive negotiations, I recently signed an exclusive with a broker to find a tenant for a commercial property. It's been about two weeks and he has shown the property to two prospective tenants who I believe he has sourced himself. He has not put up a "For Lease" sign outside the building or advertised the space on his firm's website (possibly to prevent offers from other brokers). My concern is that he is not actively looking for other tenants, and is instead pushing these two prospects on me really hard because he would not have to split the commission with another broker.

Am i being paranoid? Is this normal? If it is, I'm worried that my broker's approach is severely limiting the applicant pool. 

Thank you.

[Joel Owens]

First did your leasing rep show you a void analysis report? This shows what is missing in the marketplace and might be a best fit for your space with the highest rent per sq ft you can obtain etc.

Based on research they should be calling a targeted list and give you a spreadsheet update on actions taken so far. This way you can get potential tenant feedback positive and negative to navigate what to possibly do with the space and inquiries received.

Generally leasing commission is paid at lease execution with money going hard from the tenant with a deposit.

If commission for primary term of the lease is 80,000 a year and lease is for 3 years then 240,000 rent X .05 = 12,000. If they get paid 3% then 7,200. If they are not the broker then they are splitting with the company they are with. If they give half away they are making 3,600 before taxes and business costs. Obviously at that money level the more time in the more diminished returns.

I only focus on the transaction side for commercial as a principal broker I keep it all and six figures per deal. That is why I do not focus on leasing as it is a very low revenue return generator for a broker/agent.