Rentals in New York>Question Details

Dmj11217, Other/Just Looking in New York, NY

In New York City: What is the typical broker commission structure for commercial leases, specifically parking lots rented in bulk?

Asked by Dmj11217, New York, NY Mon Oct 25, 2010

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THERE IS NO TYPICAL COMMISSION! Each real estate company is free to set its own fee schedule and to negotiate various rates with individual buyers and sellers. Any agreement between two different firms to set standard rates, however, is a serious violation of antitrust laws. Violations occur when competing firms agree to act together, this is what the US Justice Department calls restraint of trade. There is no set fee, fees are negotiable.
Web Reference: http://www.clovelake.com
0 votes Thank Flag Link Wed Feb 9, 2011
The Sherman Antitrust Act is a federal antitrust law, that prohibits unfair trade practices (or monopolies of any type) in the United States. Many states have their own antitrust laws as well.

These laws are rooted in the idea that competition creates the largest choice of products and services for consumers, providing them the broadest range of price and quality. The most common antitrust violations that are associated with the real estate industry include price fixing, boycotting competitors and allocating customers or markets.

Price-fixing is illegal. Brokers must independently determine commission rates or fees for their own firms only. Hinting to prospective clients that there is a “going rate” of commission or a “normal” fee implies that rates are, indeed, standardized. The broker must make it clear to clients that the rate stated is only what his or her firm charges.

If you are looking to lease a property, you are not paying commission. If you are the landlord you should discuss the commission with your broker and come to an agreement.

I work at Bond New York's Commercial Headquarters in Manhattan. I'd be happy to discuss further, give you advice on your property and provide you with a quote and our companies commission structure.

Filippa Edberg
Bond New York
Commercial Headquarters
filippa@bondnewyork.com
0 votes Thank Flag Link Tue Nov 16, 2010
I agree with Zhann,

The Sherman Antitrust Act prohibits brokers from discussing broker fees.

Each brokerage company charges different fee base on couple different criteria: how aggressive is the property been priced; will the property generate addition sales lead to the broker; how much money does it need to succefully market the property.

if you would like a quote from Warburg Realty Partnership, one of the oldest and more trusted firm in New York, Please contact me and I will provide a free visit to your property and give you a detailed quote.

Sincerely,

Vincent
0 votes Thank Flag Link Thu Nov 4, 2010
As others have already commented, commissions are negotiable between the broker and the client and there may or may not be a "standard". I hate to get legal but any open discussion (especially in a public forum such as this) of commission rates by licensed real estate brokers and or salespersons could be construed as a violation of the Sherman Antitrust Act. Speak with the broker who you are working with or the brokers you interview and discuss commission rates/structure with them, after you interview a few you'll have a general idea of things.
0 votes Thank Flag Link Mon Nov 1, 2010
Commissions are always negotiable, there really are no set standards as it would be against the law--choose your agent with care.
0 votes Thank Flag Link Tue Oct 26, 2010
There is no standard commission, commissions are always negotiable in New York State.

Karla Harby
Charles Rutenberg Realty
kharby@crrnyc.com
0 votes Thank Flag Link Tue Oct 26, 2010
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