Broker commission structure on long term lease BTS
Up to this point we have developed many 50,000 to 150,000 SF industrial buildings on spec and in our smaller market, shorter 3 to 5 yr terms are more common.

Have the opportunity for a 350,000 to 400,000 SF BTS on a 10 year lease with a national credit tenant. What sort of commission fee and structure should I expect to see from the tenant's broker on a lease in the +/- $20M range?

Appreciate any insight you may have, thanks
[{"id": "i2qlr9c", "text": "Commenting and upvoting as I\u2019m interested", "replies": [], "depth": 1}, {"id": "i2rek2a", "text": "13-15% of the the gross average annual rent for agent\n1.5 months - 12.5% gross average annual for TR broker mainly paid by the tenant or out of the TI. \nIf it\u2019s not paid by tenant or out of the TI then it\u2019s usually the agents fee x150% split in half (ie 19.5-22.5% gross average annual rent)\n(That\u2019s Aus)", "replies": [], "depth": 1}, {"id": "i2rkzbw", "text": "One possibility would be 6% of years 1-3 , 5% of years 4-6 , 2% thereafter. Include bumps in your calculation", "replies": [], "depth": 1}, {"id": "i2sm73v", "text": "Depends on the market but generally it\u2019s 4-5% to the procuring (tenant\u2019s) broker on the aggregate net rents and 2-2.5% of the aggregate net rents for the listing (landlord\u2019s) broker, so 6-7.5% total assuming both sides are repped. There are a number of markets that calculate on a $ / SF / year (Boston for instance) or have a sliding scale depending on length of lease term. \n\nAs with everything it\u2019s negotiable and depends on the deal and what works in your proforma.", "replies": [{"id": "i5unlr2", "text": "What market are you in that the above is more definitively true for? I'm learning here and curious how it compares to SoCal", "replies": [{"id": "i62rjhb", "text": "I\u2019m in the Midwest. But my practice is focused on corporate multimarket tenant rep so most of my deals are primarily in the Midwest, Northeast and West Coast. Primarily office, but some industrial. \n\nGenerally the above holds true for most markets, with some variation. It\u2019s not uncommon that commissions can vary in the same city depending on property type, deal type (new lease versus renewal), submarket, length of lease term, building quality, tenant credit, landlord type, etc etc.\n\nEach market in general has what I would call \u2018typical\u2019 commissions but at the end of the day each deal is different.", "replies": [], "depth": 3}], "depth": 2}, {"id": "i7b4cj2", "text": "Awesome...Thanks\n\nQUESTION: While its fairly easy to calculate gross, **How do you calculate 'aggregate net' rent ?**", "replies": [], "depth": 2}], "depth": 1}]