I am the landlord looking to lease part of a commercial office building. What should I look for in a commercial realtor? I looked on line and one article says to expect to pay 3% commission for 2 years of the leased square footage. For example, if I rent 2500 sq. ft at $17.00/ft that would be 2500 sq ft. X $17.00/sf X 2 year lease X 3%= $2,550 commission to the realtor. One guy I checked with wants 6%, which I don't think is too bad.

Any other things I should be aware of in hiring a CRE? MT experiences, both good and bad?

TIA

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Posted by trillhog

Elite Membership

Member since Jul 2011

19407 posts

Posted on 8/7/17 at 1:35 pm to MadDoggyStyle

for any real deals it's 3% of the initial lease term if one broker is involved and 6% if two are involved so they can split it. find the "office" commercial guy and it'll be worth every penny, don't get a residential person. make sure to have a land lord friendly lease drawn up by your lawyer, b/c they can be really bias one way or the other..

This post was edited on 8/7/17 at 1:37 pm

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Posted by MadDoggyStyle

Member since Feb 2012

3857 posts

Posted on 8/7/17 at 6:26 pm to trillhog

Any specific areas in the lease to focus on that will make it more landlord friendly? Thanks

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Posted by Bullfrog

Institutionalized but Unevaluated

Member since Jul 2010

56272 posts

Posted on 8/7/17 at 7:58 pm to MadDoggyStyle

Every area of the lease is important. A decent LL friendly lease is 20+ pages.

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Posted by trillhog

Elite Membership

Member since Jul 2011

19407 posts

Posted on 8/8/17 at 8:47 am to MadDoggyStyle

you just need to make sure it's not worded to favor the tenant. especially on who takes care of what if it's a true NNN lease, such as HVAC, roof issues ect. Also include a ironclad personal guarantee although in the end they are hard to collect on. Make sure holdover clauses are in place, there's alot of things to consider.

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