Is a 3% buyer's commission on a lease normal?
I'm used to paying a commission when buying residential, but a realtor in Park City,  UT wants a 3% commission for a commercial lease. Seems weird to me but maybe that sort of thing is normal?
[{"id": "cx4rq9h", "text": "its low.....", "replies": [], "depth": 1}, {"id": "cx4svw9", "text": "I am assuming you are a commercial landlord and a broker brought you your first tenant.\n\nPaying a commission for new leases is industry standard. Some even get commissions for renewals.\n\nI had an office park in Provo, UT and we paid our brokers ~5%, for comparison. My current property pays 7.5% with a bonus per square foot.\n\nAnyway, just make sure to book the commission as an asset on your balance sheet, then depreciate the commission through the life of the lease.", "replies": [{"id": "cx8v110", "text": "Could you tell me why your paying 7.5% plus a bonus per square foot? Trouble leasing out the building? Fear of a downturn so your providing an incentive for brokers to help lock in longterm leases? It's a huge park and your trying to minimize vacancies asap?", "replies": [{"id": "cx8yths", "text": "I'm not 100% sure because I'm not involved with those discussions (I'm not involved with leasing at all), but I think it's because the building is behind airport security.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cx4szfr", "text": "wait, are you the landlord or the tenant?. Typically, the landlord pays all leasing commissions. And in terms of the %, I'd say it varies quite a bit based on size of the deal, length of the lease, and market. 3% is in the normal range, I'd say.", "replies": [], "depth": 1}, {"id": "cx4t9dz", "text": "Just to clarify, I'm a tenant. I'd expect a commission if I were a landlord, but for a tenant that seems weird.", "replies": [{"id": "cx4tk1g", "text": "this is standard.  A buyers rep agree guarantees a minimal commission from you, that in most cases is paid by the landlord.  This is what makes it so once you submit an offer the landlord can't just cross out the agents commission and tell him to fuck off.  \n\nMake sure the agreement reads that the landlord provided commission will be applied to this 3%.  If so, this is pretty reasonable.  You wouldn't work for free to just hope someone is nice enough to pay you, would you?  If a landlord refuses to pay his commission, then you can decide if you want to pay his 3% or find another property", "replies": [{"id": "cx4y0je", "text": "I asked and got this in the contract. Thanks for your help!", "replies": [{"id": "cx4yc3x", "text": "Congrats.  If you get hung up again feel free to come back.  Your broker should handle shit hopefully but we can be a good group for second opinions sometimes", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "cx4w27g", "text": "I thought a seller pays ~6% (NYC) to sell the property. The buyer does not pay a commission. \n\n", "replies": [], "depth": 1}, {"id": "cx4wbyz", "text": "Dallas TX here. Completely normal around here.", "replies": [], "depth": 1}, {"id": "cx523cx", "text": "I am a landlord and we always pay commission, not the tenant. I also refuse to pay on renewals, only initial term. ", "replies": [], "depth": 1}, {"id": "cxvdbkt", "text": "It's normal but typically paid by the owner of the property. \n\nHere (MD/DE/VA) we typically see a 6% total commission for leases, but it's split 3/3 between the list/sell sides. All of the commission is paid by the owner of the property when the lease is signed. \n\nHowever, due to anti-trust laws, we aren't allowed to set a \"standard\" or set a market price of real estate commissions.\n\nFor sale listings we start out asking for 10%, which gets split when another realtor brings a buyer. ", "replies": [], "depth": 1}]