Commissions for Leases in comm properties

[socalrws]

What are differences for commission rates for brokers who obtain a new tenant lease as compared to a renewal of expiring current lease?

[Gold River]

Hi,

    You know how much we love these generalized questions? But indulge us and please provide city and state as real estate commissions for commercial properties vary state to state, or country to country for that matter.

Please also provide what type of property? Hotel? Retail? Office? Strip Center? Industrial? Commercial Manufacturing? Fast Food? Etc, Etc, Etc.


            GR

[socalrws]

It's in Temecula CA
It's classed as Industrial.

So far a local broker who brought in two of the new leases are charging a flat fee of $500 for a lease renewal each and basically just exercises the Option to renew at a 3-4% increase per year that was spelled out in the current agreement.

My management company wants a 3% per year of lease term for a lease renewal, say two or three years and would negotiate market prices vs. the Option in the lease which is 3-4% increase per year.  They also say they are not interested in getting any new leases to fill any empty units.

The outside broker has a commission that declines each year of the lease term, half percent per year and starts at 3%, if I recall correctly. This is for getting a new lease for a empty unit.

What are the comparable rates for new lease and renewals?