Commission is negotiable, right? The per-negotiated commission typically is paid by the landlord. Ok. We also know the cost of commission is factored into the listing price, so who is ultimately paying? Right. But that is not what I am talking about.
A few weeks ago I was talking with a business owner, and with my being in commercial real estate, the subject came up about the current commercial real estate market. I mentioned I had toured a commercial property for lease, with a client recently and the business owner I was talking to, absolutely could not believe the listing price, as he told me a few years ago he had been leasing a commercial property just down the street from there for over twice as much as the current listing price.
As I mentioned before, tenants are not commercial real estate professionals, rarely know the commercial leasing market or which commercial buildings have space to lease, which puts them at a disadvantage when looking for space,
I was not talking with this business man, to get a sale or anything. This is a man I enjoy meeting with, he is a wealth of information, always knowing what is going on in the business community.
This is an experienced businessman, who is also a real estate investor with considerable residential real estate investments, has multiple businesses and has entered into dozens of commercial real estate leases for his various businesses over the years ( did I mention he is experienced and knowledgeable ), yet he was not aware.
So I guess the point and the important question is. How much does it cost a DIY or unrepresented ( or limited represented) tenant?
This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared