This lender I'm trying to work with that my loan officer found wants to charge a $2500 lender fee upfront

Is this common in commercial lending?  It's for a multifamily.  I've never had to pay fees up front.  Also their loan they quoted is about .5% less then other lenders LOIs so I did prefer going with them

Yes, this is common. $2,500 is actually on the lower end. I'm used to seeing $7,500+ application fee. 

@Susan O. yes, in fact its on the lower side.

@Susan O. Unfortunately this is typical.