FYI, I am not the one in the middle of the negotiations, just trying to get myself learning and understanding as I will likely be the one managing the Partnership for the next generation.
It looks like it's a 3% commission. I get where y'all are coming from in terms of "be happy you've had a long, stable tenant," and yet I want to point out they have greatly benefited from being in the building this long as well. They have pretty much always paid below market rates, have never had to worry about moving, up until this renewal, lease renegotiations have been quick and easy, all done between the Partnership and company directly, no professionals, no commissions.
So, yeah, I get it, it's been a good setup for both parties.
That being said, (and perhaps this is my naivete coming into this new space) the fact that after all this time they decided to outsource the lease renewal negotiations feels like a "them" issue and like a one-off fee. Again, perhaps my naivete, but it seems to me that commissions are largely about "finding" a tenant, hence it making sense to get ongoing commissions as long as that tenant lasts. The renegotiated lease is largely taking the existing lease and just specifying the updated market rate and new lease term.
