Landlord rep commissions - grocery anchor (Florida)
Does anyone know what a typical Landlord rep broker commission is for neighborhood shopping center / power center anchors in Florida? We do a fair amount of Landlord rep work in strip/neighborhood shopping centers but mostly on small shop space. We get between 5% to 7% on the first ten years on in-line/small shop space. We are negotiating a deal for a large (40k sf+) national grocery space but not sure what typical LL rep commissions are for something like that. 20 year term base with lots of 5 year options...
[{"id": "hu8jo03", "text": "The rates for large anchors are going to be low. You better get 6 even if it is for 20 years. I don\u2019t typically charge for renewals 20 years down the road.", "replies": [{"id": "huc6dmj", "text": "Thanks for the input! When you say \"6 even if it is for 20\", you mean 6% on 20 years? Yowza!", "replies": [{"id": "huchixo", "text": "Grocery stores and large anchors aren\u2019t going to pay the rates everyone else is. Look up some recent comps and you will understand what I mean. Normally they have a ton of TI and very complicated contracts. Selling that much space is like 1/2 if not 1/4 of the work compared to leasing to a large big box. I had a 1200 SF telecom tenant with a 63 page lease when it was all said and done. The owners willingness to bring an abandoned shopping center may hurt you. Your going to have a lot of money in signs and advertising. Probably 2-5k a year for reasonable advertising on costar/Loopnet and 6x V shape signs until you get an anchor the smaller units aren\u2019t going to lease for what they should also.", "replies": [{"id": "huq508k", "text": "Great input - thanks!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "huarn12", "text": "Depending on sophistication of LL, they usually only pay $2-$4 PSF on the SF. \n\nIf it\u2019s not a big time landlord, hammer them for a full fee. \n\nAs for the options, if you don\u2019t ask you don\u2019t get. \n\nOf all the commissions I had executed, only ONE landlord agreed to pay me 6% on 20 year initial and 5% on all exercised options. \n\nIt\u2019s obviously rare, and the landlord needs to be an idiot, but it does happen lol", "replies": [{"id": "huc69ul", "text": "Not a large Landlord, but he is no dummy. Thanks for the input. We're going out at 5% on the first 10 years. Works out to like $5.25 psf if we were billing on a sf basis. We'll see what happens!", "replies": [], "depth": 2}], "depth": 1}]