I own a large industrial building that I am considering putting up for lease. I was shocked by the fees charged by the first agent I approached. Can anybody please enlighten me to what the going rate is in terms of agent's commissions and fees for leasing of commercial property, as well as for selling commercial property. Your assistance will be greatly appreciated
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Agents fees and commissions
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It would help if you posted the asking rental and the lease fee the agents are asking based on that.
They do charge a lot for leasing these days.
Leasing tends to take a lot of time and pays a lot less than selling. So many agents don't really want to do it. Why spend 3 months on a leasing deal that can fall over, when you can spend 4 weeks taking a property to auction for 5 times the commission?Squadly dinky do!
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I asked the same question regarding sales commission on here some time ago. The answers were helpful and in the end I agreed on a flat rate of 2% plus GST and reduced advertising fees which I felt was reasonable. A lot of it depends on the value of what you are selling. I could probably have negotiated the commission down but as someone here rightly pointed out a good agent can be well worth the commission.
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Totally agree. I resent an agent asking for $25k commission and then expecting me to pay for the advertising that they also put a mark-up on!You can find me at: Energise Web Design
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It's been a while since I saw the agent fees for leasing, but from recollection they are around 16-17% of a year's rent.
Two months, in other words.
As for selling, it depends on the value if the property. Anything in the several million bracket you shouldn't be paying more than 2% plus GST all inclusive. Lots of millions drags the percentage down further....to 1.5% or as low as 1%. I would shop around.
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