leasing commissions - Posted by wws

Real Estate Investing Retail
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Posted by wws on May 09, 2006 at 10:26:14:

I tend to agree with you…Several years ago we got into a legal battle with the broker that was handling this building on a verbal agreement and he wanted fees or commissions for life. This broker just happened to be a nice guy to help the old lady (my mother) out and wanted to have an annunity. After many threating letters he went away when no contract was produced. The bad news was we paid a lot of money before we figured out there was nothing in writing. thanks…

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leasing commissions - Posted by wws

Posted by wws on May 08, 2006 at 16:45:57:

What is the norm for broker fees on a lease in a small strip mall…sure could use some information.

Thanks

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Re: leasing commissions - Posted by Bill Taylor

Posted by Bill Taylor on May 08, 2006 at 22:40:32:

In my case we are paying 4% to the leasing agent if they lease it and they get 2% if someone else leases it and the agent that leases the unit picks up 4%. In my experience so far though the agent doesn’t amke that much becasue they will not get out there and do deals. I am going to take Ray’s advice and offer 4% to an agent to bring me deals but if I can find myu own I will not make an agreement to pay them on my efforts.

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Re: leasing commissions - Posted by wws

Posted by wws on May 09, 2006 at 09:03:17:

Thanks…that gives me a guidline…so you would use 4%…I assume then the 4% is for the original term and not include any options.

Thanks

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Re: leasing commissions - Posted by Bill Taylor

Posted by Bill Taylor on May 09, 2006 at 09:23:50:

I looked at the leasing agreement and they were willing to take that off that they got paid on renewels. I have herad from others on this board that all that did was give the leasing agent an incentive to come back and try to get your tenant to move when the lease they did runs out. I guess they will have to get to the tenant before I do. If the desire to do more than the minimum holds true in what I see leasing agents doing to get my units filled I will not have to worry about them doing any follow-up if they are still in the business. So far waht I have seen out of my current leasing agnet they are hoping for other agents to fill my vacancys so they can get the dab of commission and not the big hit. As soon as this agreement runs out we will have to see who else is out there on the market that may be hungry. I need more of a leasing agent and not a listing agent.