I need help BP! I have a client that is interested in renting out a commercial space for 3 years for $30,600. When I contacted the listing agent to negotiate compensation, he responded that I should get my compensation from my client because "the landlord only pays [him] half of a month". Has anyone ever dealt with this situation before? Also, how would you handle it differently moving forward? Also, the space has been sitting vacant for over a year, and the landlord has been trying to sell the whole building for over 2 years.
This happens to me all the time in residential leasing when working with a tenant. I just always disclose upfront there is a broker fee no less than 1/2 and no more than 1 full installment of rent.
As for commercial I am not sure. I have not had a commercial lessee client before. I do have commercial property and even though I have not listed it on the MLS before, I do plan to offer compensation to a cooperating broker. It would only make sense.
Also in many real estate books I have read most developers, lenders, and landlords have a line item expense for commissions. I think in commercial leases it could be expected that the owner of the property compensate the listing agent x and if that agent chooses to cooperate with other brokers then so be it. The listing agent should have negotiated a higher fee if they wanted to cooperate with another broker.
That is another reason you need to join their association and put CCIM, MBA after your name. Most will not coop with other agents who produced a buyer. However, if you belong to their associations or know them personally all of a sudden you get a split or referral fee. This is one reason most realtors just focus on residential properties.
Pretty typical in commercial in my market for buyers or tenants to pay their own agents.