How do I get paid from 0% Compensation on 3-yr commercial lease?

Question

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.

Russell Brazil · Answer

Pretty typical in commercial in my market for buyers or tenants to pay their own agents.

Sam Shueh · Answer

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.

Rich Hupper · Answer

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.

How do I get paid from 0% Compensation on 3-yr commercial lease?

How do I get paid from 0% Compensation on 3-yr commercial lease?

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