Commercial Real Estate Agent Commissions
Commercial Property Brokerage Fees
Commercial real estate brokers in Minneapolis/St Paul, MN are compensated at the time of lease signing or sale closing. In most cases the building owner pays for all commercial real estate brokerage commissions, even when we represent the Tenant. CRE Partners has a ton of flexibility and can act as a full service agent or a fee based agent (and anything in between) depending on the situation. We will work with you on a fee structure to align our interests, maximize our motivation, and achieve your goals. Contact us to discuss your options.
We Disclose All of our Fees Up Front
We believe our fees are fully transparent and distinguish our services. We disclose all of our leasing or sales commissions up front and on proposals. You will never see “fee determined per separate agreement” on our documentation. If you don’t use us, make sure your Representative does the same and fight back against backroom deals and undisclosed fees.
Offset Closing Risk, Reduce Fees
We can structure our commercial real estate commissions in many ways to align interests and meet the desired level of service. Whether you want a full-service agent or more of a consultant, we can design a fee contract that works best for you. Because we generally only get paid when a transaction is completed, our compensation percentages often reflect the risks involved.
Commercial Real Estate Sales Commissions
For commercial property sales, the selling commission is dependent upon the complexity of the transaction and the selling price. Sale commissions range from 2% – 7% and are usually split between buyer’s and seller’s brokers (Paid from seller).
Office & Warehouse Leasing Fees
Listing agreements and fee structures always account for a tenant representative and listing agent. For industrial leases in the Minneapolis market, Landlords typically pay 10.5% of the first years net rent, 9% of the second years net rent, 7.5% of the third years net rent, 6% of the fourth years net rent, 4.5% of the fifth years net rent, and 3% of the net rent for each year thereafter. For office leases, Landlords typically pay $1.50 per square foot per year of the lease up to five years and $1.00 per square foot for every year thereafter. The market currently requires landlords to compensate tenant representatives with approximately 2/3 the fee structure stated above. Listing agents generally receive the remainder. If we list a building and a tenant representative is not involved, we generally give the building owner a 33% discount. Also, we are flexible with payment schedules depending on the credit of the prospective tenant.
Tenant Rep Commissions
No Savings are Gained by Not Using a Tenant Rep Broker. Listing agreements are negotiated before the property is exposed to the market, therefore Tenant Representative commissions are in place before a prospect visits a property. Generally, you will not receive a discount by not hiring your own broker because a full commission will be paid on every listing. However, you should be aware of what your tenant rep broker is charging, as above market fees will significantly affect your deal (especially if you lack appropriate credit). The commission is paid by the landlord at lease execution and occupancy. Utilizing the services of a Tenant Rep will save you time and money throughout the negotiation process.
Commercial real estate commissions & fees in the greater Minneapolis/St Paul, MN metro including: Chaska, Chanhassen, Eden Prairie, Edina, Wayzata, Minnetonka, Hopkins, St Louis Park, Golden Valley, Plymouth, Rogers, Bloomington, Shakopee, Eagan, Brooklyn Center, Brooklyn Park, Maple Grove, Lakeville, Burnsville, Fridley, Blaine, Coon Rapids, Arden Hills, New Brighton, Oakdale, and Woodbury