Broker commission for a multifamily investment on the west coast!?
What should the broker percent commission be on a $5.5 to 6M listing for a sale side broker?  Looking for what market commission should be for a deal like this?  Would be great if someone has a range for what a broker would charge for selling an apartment building if listed or if off market.  

Also, broker is an acquaintance.  Want to be fair to him but also don’t want him rubbing me blind if he gets to list the building in a turbulent market.

Thank you.
[{"id": "ikvs1c6", "text": "I am a commercial real estate broker in LA that does a lot of multifamily sales. My starting position on $5M + transactions is 5% with or without a buyer side broker. At the end of the day, I would usually accept 5% with a buy side broker and 4% if we represent both buyer and seller.\n\nIf my client pushes for a 4% commission total with a buy side broker I explain to them that it can disincentivize buyer\u2019s agents as other listings would be offering them 2.5% commission as opposed to a 2% commission for this listing. If they choose to push for a 4% total commission I would accept it.", "replies": [{"id": "ikvxjak", "text": "That\u2019s called steering", "replies": [{"id": "ikw1vhp", "text": "Yup, and you'd better believe that a broker will push clients towards listings that will pay them more", "replies": [{"id": "ikw3pmp", "text": "That\u2019s the problem with modern real estate agencies.", "replies": [{"id": "ikw6uge", "text": "That's nothing to do with real estate agencies, it's simply human nature. Should an agent present some deal he saw that offered no commission? Technically yes. In reality you'd be working for free with nothing to show for it but some graditude   from your client.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "ikz4pys", "text": "Are you saying what this guy is explaining is steering, or that a buyer's broker pushing a client towards a purchase that offers a larger commission is the steering part of it?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ikw0c1b", "text": "Not a commercial agent, but im on loopnet, crexi and corelogic to see if there are any sweet deals. For my area i notice building over 5m are usually 2% commision for each party. and anything in the range of 1m-3m is 2.5% for each side of the transaction. One of my agent on my team sold a $6.6m mix use building and double ended it at 4.25%.", "replies": [{"id": "ikzy1t8", "text": "Strange why would folks download your comment. I\u2019ve been told and generally agree that LoopNet tends to be the trash bin of overpriced multi-unit deals that couldn\u2019t be sold in-house at the brokerage.", "replies": [{"id": "il02yc5", "text": "Doesn\u2019t phase me. I live in the bay area but other markets might be different, just sharing what I notice in my area. I mean ppl can look up the compensation themselves and gauge it that way too", "replies": [{"id": "il04xps", "text": "Greetings from the East Bay!", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ikw3qn0", "text": "Good question, that\u2019s a tricky deal size. I would think it depends on the brokerage type and the type of seller. If it\u2019s a residential agent who stumbled upon a commercial listing and is marketing to doctors and lawyers, sure they would probably try to charge 4-6%. \nIf it\u2019s an actual CRE brokerage then they are going to be more realistic because their client is probably more knowledgeable. I\u2019d say they\u2019d ask for 3% given the small deal size.\nMost institutional sized deals ($50MM-$100+MM) go in the 0.50%-1.0% range, if not just a pre-established fee. \nFor this particular deal, as the seller, I would target paying 1.75% with an incentive for exceeding the target price, maybe 5% of every dollar over $6MM.", "replies": [], "depth": 1}, {"id": "ikw8xhe", "text": "4-4.5% if co-brokering. 3-3.5% if he double ends it and is the only broker.", "replies": [], "depth": 1}, {"id": "ikwdyqr", "text": "Man. This thread has a whole lot of nope going on in it.", "replies": [], "depth": 1}, {"id": "ikweewk", "text": "Good info! Dude selling the building is a one man shop and wants 4 percent.  Left a larger shop to go solo.  Not even sure he is the right dude to sell the deal!  But he is pushing me.", "replies": [{"id": "ikxygfe", "text": "4% is a reasonable ask on his part. You can likely get him to 4% if there is a buy side broker and 3% if he represents both sides. \n\nWith that said, if you\u2019re not sure he\u2019s the right person to sell this deal then he most certainly is not. Just because he\u2019s persistent in trying to get the listing does not mean he\u2019ll do the best job.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ikwpnc6", "text": "Just paid 4% (both sides) for a $1.5MM sale for a much more complex commercial property in San Diego.", "replies": [], "depth": 1}, {"id": "ikxgg4k", "text": "I think it all depends on the deal, the client and the broker. I have a $8m+ deal at 6% (4/2) and also just wrapped up a $3.5m at 3% (1.5/1.5). \n\nI would say 4% is average to co-broke and 3% if they double end the deal.", "replies": [], "depth": 1}, {"id": "ikxj2ul", "text": "2%", "replies": [], "depth": 1}, {"id": "ikxwdia", "text": "Its all negotiable. I work mostly residential but Ive done $2.5 at 4/4 (was originally listed at 5/5), $5.2 at 1.5/1.5, and a $3.3 at 3/3. Each deal will be different.", "replies": [], "depth": 1}]