Question about broker commission in NY for 10 years rent
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[{"id": "ivr6rx5", "text": "Is this language taken directly from an agreement sent by the broker? I\u2019m not sure I even understand what the commission structure is", "replies": [{"id": "ivrepu8", "text": "Exactly. It\u2019s written in a way that could be abused by interpreting it differently.", "replies": [], "depth": 2}, {"id": "ivtfbol", "text": "7% fee for the first 5 years of rent and 3% for the next 5 years of rent. It's a sliding scale.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ivr6vj3", "text": "I negotiate a lot of these for my employer, a CRE developer/owner. I would not agree to that but it doesn't sound outrageous. Assuming it's a corporate tenant or there is a PG, I generally offer 3.5% on the initial term, no coverage on renewals. I then split that payment over the first year. 1/3 upon first month's payment, 1/3 in 6 months, and 1/3 at 12 months if tenant is in good standing. I will come up to 5% if needed. A lot of brokers will huff and puff that 6-7% is standard but it's all negotiable.", "replies": [], "depth": 1}, {"id": "ivrdqie", "text": "This looks wacky. There's no standard way of doing things (it's actually illegal to coordinate on pricing) but from what I've seen it's 3% on the term for retail, 8% on the first year and 3% on all subsequent years for industrial and $1.25 PSF per year on office.\n\nAlso I've seen some guys try to get paid on options but I don't know what landlord is actually agreeing to that.", "replies": [{"id": "ivrr5jp", "text": "Have seen language caveating \"If the broker is then representing...\" Meaning, if the broker dropped off a few years ago, nothing. But if the broker has been working it over that time, something.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ivrml3v", "text": "I just did a tenant rep in with a developer that was 6/5/4 then 3 for the remainder. Half due at signing half due upon first rent payment. This is pretty standard for my market.", "replies": [], "depth": 1}, {"id": "ivshajh", "text": "Can't contribute to your answer and I had to read it 3 times because rental agreements work differently in Europe.\n\nAgents get paid monthly for the whole duration of the rental contract?? Wow! \n\nWe have one-off payment when a contract is signed. 1 year or 5 years, payment is the same.", "replies": [{"id": "ivss5zq", "text": "Fee equal to one month rent?", "replies": [{"id": "ivt1ano", "text": "1,5month  rent is the commission. Then  50% if you have to share it with another agent. It's gas money unless you are talking big bucks( super rare to get a rental like that as well)", "replies": [{"id": "ivtfnik", "text": "Sounds like a residential lease", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ivsv30u", "text": "Where in NY? My company is brokerage and Development in NYC/Long Island. I see different scenarios, but the one that won't die and is more or less a NY custom is 7% for Years 1-3, and 3% thereafter. Payment due in full upon first month's rent payment. Obviously variations but this is standard in my experience. \nWorking as retail broker/developer for 13 years.", "replies": [], "depth": 1}, {"id": "ivtfl38", "text": "Ny is on a sliding scale so looks accurate. The % is negotiable. If it's a strong credit national tenant and a broke you see doing business with in the future then that will dictate your negotiation. \nI would counter that 7% with 4-5% for the first 5 years of rent. \nAlso make sure to take out any free rent and also make sure to get an attorney whos done commercial leases in your area.", "replies": [], "depth": 1}, {"id": "ivtfm5v", "text": "It sounds more or less normal. The language could be tightened up to indicate which payments are triggered when (i.e. first month's rent is often given upon lease signing, does that trigger the 1st payment? But then isn't that also the first payment, which would trigger the second payment?\n\nRegardless, that commission is very high.", "replies": [], "depth": 1}]