What is the typical San Francisco commercial lease commission for brokers?

Commercial Inve...
Both Buyer and Seller
San Francisco, CA

My broker wants $1.50/sqft. per year to the lessee's agent and $0.75/sqft. per year for herself on a 10,000sqft. space. The commission rates end up to be 12% which I feel is outrageous. Am I being ripped off or are these the market rates in San Francisco? If I'm being ripped off, what is a more reasonable commission rate? Help!

Answers (2)
Name
Both Buyer and Seller
California

The rates you quoted are what we pay as well for office space. Given the recent bad economy, maybe those rates will change. I think the problem is that if you negotiate a low rate, the brokers have less incentive to show your space versus a different space that is going to pay them more commission. The thing that sucks is that if you have like a 5 year lease, you will have paid all of the commission up front (unless you can negotiate otherwise) and the tenant could possibly bail on you after year 1. You would have lost all of that money on commission.

Mon Mar 2 2009, 13:59
Jed Lane; Fog C...
Broker
San Francisco, CA
FIRST ANSWER

All commissions are negotiable. If you feel "ripped of" counter.

Thu May 8 2008, 08:33

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