Estimate of Average transaction costs in CRE
Say, for an office space 25,000 sq ft at $75 SF/Yr for 5 year lease term located in San Francisco. Transaction costs could include: search costs, brokerage fees, legal fees, registration fees, and any other costs.

What's the cost to the tenant?

What's the cost to the owner/landlord?
[{"id": "frjk4jj", "text": "LL cost is 6% of total rent as a commission plus build out costs which are super variable. I\u2019ve never done office in SF CBD but would think it runs 100+ for a TI package, plus more for landlord work if there\u2019s title 24 stuff on top of general whiteboxing. Legal costs are totally variable based on how long and complicated the negotiation is, could be $5k could be $50k. I\u2019ve negotiated hundreds of leases and have never had one recorded (other than ground leases). \n\nFor the tenant, only cost is tenant improvement above what the LL will give you, legal for lease negotiation, moving costs (which are expensive but you need to talk to a moving company about that, it\u2019s freight orice based on volume), and general set up costs. A moving coordinator should help you figure that out. It\u2019s really tough to estimate what your specific costs will he as a tenant.", "replies": [{"id": "frjm39d", "text": "For the LL, is the build out costs the same as TI? or that's something else? \n\nWhat entails legal costs? Paperwork/Lawyer fees for lease review?", "replies": [{"id": "frjnllz", "text": "Not all the time (especially in CA). TI is offered to the tenant, but LL might have to come out of pocket to white box the space if the prior tenant was super specialized and you have to demo the space to get it back to baseline. That would be an expense over and above TI. Also CA has title 24 energy standards, if you\u2019re doing new build out you\u2019ll have to retrofit to whatever the most recent standard is which is a LL expense over and above TI. \n\nAnd yea legal is just lease review. There\u2019s nothing to \u201clegally\u201d file. Need to review lease you\u2019re entering into and possibly cross review it with your lender to get their approval as well (and you\u2019d pay their legal fees for their review and approval, but they should be minimal)", "replies": [], "depth": 3}, {"id": "frk0ftk", "text": "Not necessarily, it could be considered landlord work (LLW) which is an additional cost beyond the TI (for example maybe the LL has to remove all improvements from the prior tenant to make the space essentially a clean slate).\n\nThose costs wouldn't come out of the TI allowance.\n\nAs a LL if you were modelling that in ARGUS you would just lump it in with TIs, but in reality it's not.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "frjyg79", "text": "Check with title company. That is county dependend.", "replies": [{"id": "frjz1vs", "text": "Title company wouldn\u2019t be involved in a lease", "replies": [], "depth": 2}], "depth": 1}, {"id": "frk1isu", "text": "If that is business opportunities. If it is between a landlord and tenant, let the realtor handles it. He will likely still get title &amp; escrow company involved. Disclosures, registration etc", "replies": [], "depth": 1}]