Hello,
I am new to retail investing and am getting ready to close on a small strip mall that has one vacancy. I am going to hire a broker to fill the space. I was wondering how the typical leasing commissions are structured? I have had brokers lease office buildings in which they are paid the first months rent plus 4 to 5 percent of the monthly lease, but I was wondering if retail is the same?
Thanks, BJ
Hey BJ, I work for a Commercial Mortgage Brokerage firm here in Midtown Manhattan, NY. Curious to know if you've obtained financing for the purchase on your strip center as we will obtain a very competitive rate for you and work nationwide. If you have any general questions I would be more than happy to speak with you and can guide you through our website as well, ****Must participate a while before posting URL's***
Darrell Graf
Usually 5-6% of the total value of the lease.
Ya, figure it this way..
lets just say its 1000 a month for rent (low i know, but trying to use simple figures) and they want to sign a 5 year lease, so the TOTAL of the entire lease, would be 60,000 (12k a year x 5 years) typically, it would be let say 6% of that total amount, so you'd pay a 3600 fee.