What % do commercial real estate agents make on an average 5-year deal (office space)?
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Answer:
Depends on the city. In New York City the typical commission would be 5% of the first year's rent, 4% of the second, 3% of the third and fourth years, and 2% of the fifth year. That works out to roughly 17% of the base rent, or first year's rent.
Bruce Feldman at Quora Visit the source
Other answers
In some markets like San Francisco it will be measured on a per square foot amount, but in most markets it's based on a percentage of total rents over the term. In Los Angeles, 6% is usually budgeted for a new deal, and that will be split (not necessarily equally) between the tenant rep and the landlord rep (both rates would be negotiated independently).
Matt Ahrens
My deals are pretty much 1 months rent on a 1 year deal (8%+), 6% on years 1-5, 3% 6-10 & 1% thereafter. The bigger question is whether taxes, inflation adjusters or CAM are commissionable.
Eric Bickmann
To reinforce each market is different, SF is $1 or $0.50 per rentable square foot while the SF east bay is 7.5% for a new deal. 5% to the tenant rep and 2.5% for the landlord rep. On a renewal, it's typically 2.5% to each (tenant rep and landlord rep).
Greg Scharlemann
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