I own a 12600 sq ft building which my company occupies all but 2200 sq ft office area of. I’m looking to lease the 2200 sq foot office. It is separated, metered, alarmed, entry, all separate from our other space. It is class A office, with 6 or 7 parking spaces, currently shell space. I’m looking to lease it, probably in the range of 10-14 per sq for just shell, or 14-20 built out. Lease min 3 years, 5 years preferred.
I’m looking to have a realtor take care of everything related to this, putting signage, advertising the space, and fielding calls and interested tenants. My current realtor proposed this agreement:
He takes
6% of lease income year 1
5% of lease income year 2
4% of lease income year 3
3% of lease income thereafter (as long as same tenant remains in space, including lease renewal)
Now, I know this is a small space, so its not quite as standard as other commercial spaces when it comes to commission.
One other thing that bothered me was if my tenant stiffs me, and I’m unable to collect his rent even by legal means, for the remaining duration of any effective lease, my realtor still takes his cut.
Please advise. I’ve heard of the realtor only taking 1 or 2 months worth of the lease as his commission.
-Chris