Flat fee in this market will not get your building filled, and will not guarantee quality tenants.
Commissions on industrial property are mostly sliding scale, which I will expalain in a minute.
You want good people in your building and a good leasing agent is worth his or her weight in gold along these lines.
You should also be prepared to make tenant improvements to secure a good tenant. ie. electrical, plumbing, showroom, etc... This is a concession and of course is totally negotiable.
A siding scale commission is standard. The following is an example. Most industrial leases are 5 years with an option. All leases are tied to an annual CPI increase.
A n example of a commercial commission structure for a five year oculd be as follows:
5% the first year, 4% the 2nd year, 3% the 3rd year, 3% the 4th year and 2% the 5th year. That is the percentage of the annual rent for the entire term of the lease.
If the rent is $5,000 per month. That equates to $60,000 per year.
Year 1 commission is $3,000.
Year 2 is $2,400.
Year 3 is $1,800.
Year 4 is $1,800.
Your commission to lease that space is $10,200.00 In essecense, 2 months rent in this example.
Many commercial brokers charge more. This is only an example.
But what is it worth to you to secure a good tenant who will pay you $300,000 in rent over the next 5 years?
Year 5 is $1,200.
With leases, everything is negotiable. You are climbing in bed with someone for say 5 years. You want that person to be successful so they will continue to pay their rent on time so you earn your $300,000 in 5 years.
You should be prepared to pay, in addition to the commission, a certain amout for tenant improvements, which add value to your building, to accomodate the tenants needs.
If you don't, someone else will and you will lose a good tenant.
This is why you need a good commercial leasing agent. They can advise you as to what is customary in your market.
You find a good leasing agent, latch on to them. Good ones are hard to find. Pay them what they are worth. Don't try to cut corners on commmission. Get and keep great tenants. Simplify your life.
I hope this helps.