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Commercial Real Estate Agents

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3 Putt

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Aug 18, 2005
Professional Status
Certified General Appraiser
State
Ohio
Been a long time since I have had any dealings with commercial agents. How are the typical fees structured? Last I remember it was about one month's rent for their services. Is this still true or have things changed?
 

3 Putt

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Joined
Aug 18, 2005
Professional Status
Certified General Appraiser
State
Ohio
Acting as the leasing agent. Handling the listing, finding prospective tentants, working out the negotiations of the lease, etc.
 

PropertyEconomics

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Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
Looks like Mr Rose has found a second line of work but doesnt know how to charge for it .... :shrug:
 

Terrel L. Shields

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May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
We have some locally who do management and its typically about 7%...roughly a month's rent. They might cut a deal for an "easy" one. The local property managers typically charge about the same for apartments, rentals, etc. Commissions are typically a little higher than residential commissions for selling - 10% being pretty common.
 

Kali the Boston Terrier

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Jul 7, 2003
Professional Status
Certified General Appraiser
State
Michigan
It depends on the range of services, if its just leasing than 7-10% is about the norm. Any other type of property management typically indexes it higher between 12-15%. I know very few commercial agents that do apartment leasing, most that do leasing do offices and industrial buildings...those agents typically charge 5% on the aggregate of the lease term, sometimes it includes renewals, some on buildout as well.

I am a commercial broker as well, right now I am negotiating an office lease and the commission is 5% for the entire term so (($10/SF * 4000 SF) * 5 yrs)* 0.05 = $10,000 in commission
 

hastalavista

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May 16, 2005
Professional Status
Certified General Appraiser
State
California
I pay a management fee of 10% to manage a small apartment complex (6-units); these apartments have been in my family for years and it is a very (20+ years) long-term relationship.
 

3 Putt

Thread Starter
Member
Joined
Aug 18, 2005
Professional Status
Certified General Appraiser
State
Ohio
Looks like Mr Rose has found a second line of work but doesnt know how to charge for it .... :shrug:

If and when I seek out another line of work, it will be as far away as possible from real estate :)

Thanks for the input, it was very helpful!
 

3 Putt

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Joined
Aug 18, 2005
Professional Status
Certified General Appraiser
State
Ohio
I'm thinking of joining the world's oldest profession...farming!
 

Joker

Elite Member
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May 28, 2002
Professional Status
Certified General Appraiser
State
Ohio
I can sell you some cows if you are interested.
 
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