How To Calculate Leasing Commissions In Commercial Real Estate
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Paying someone to help you find a tenant and/or negotiate a lease
Amount usually based on the value of the lease
Amount usually paid before or at the time the tenant starts to pay rent
By the end of this episode you’ll learn:
What are Leasing Commissions?
How do you calculate the amount - flat rent?
How do you calculate the amount - with escalations?
When are they paid?
Have a few minutes:
If leases are the life-blood of commercial real estate, then leasing commissions are the vegetables. Sometimes painful to swallow, but so very necessary to maintain a healthy operation.
You may not enjoy spending $100,000’s to hire a third party to identify the right tenant and negotiate the right lease terms, but you are rarely disappointed when you’ve created ten’s of millions of dollars’ worth of value because of that leasing agent.
This is the first episode of a multi-part series where we introduce the topic of commercial real estate leasing commissions.
In this video we’ll explore why owners should consider hiring a 3rd party leasing agent and how to calculate the commission amount under different payment structures.