Commercial Real Estate Brokerage

Commissions & Fees

Minneapolis/St Paul

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.

 

NOTICE: THE COMMERCIAL REAL ESTATE FEE OR COMMERCIAL REAL ESTATE COMMISSION RATE FOR THE SALE, LEASE, RENTAL OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ITS CLIENT.

Fees for Selling a Commercial, Office, or Industrial Buildings?

For commercial property sales, the selling commission is dependent upon the complexity of the transaction and the overall sales price. Fees will also vary depending on if it is a user sale or investment sale. Sale commissions range from 1% – 8% and are usually split between buyers and sellers brokers. In general, all fees are paid for by the seller at closing.

 

Sales commissions and fees for commercial, retail, industrial, and office buildings (user sale example):

Total Fee Listing Agent Buyers Agent
6% 3% 3%

 

 

Other important things to consider:

• In most cases, if a buyer agent is NOT involved, CRE Partners will reduce the fee by 25%.

 

• Not using a buyer representative generally doesn’t save you much money (1% – 1.5%). Most buyer reps will save you significantly more than the “added” cost.

 

• The split is agent dependent, not company dependent. Example: XYZ company has two agents. One represents the buyer and the other the seller. In addition to dual agency concerns, the fee will generally be not be discounted and will be split evenly among the agents. List your building with CRE Partners and we can provide savings if both agents are “in-house”.

 

Pro Tip: Be cautious of agents who try to limit the marketing/exposure to “hoard” a full fee.

 

 

Investment sales commissions and fees for commercial, retail, industrial, and office buildings (investment sale example):

Total Fee Listing Agent Buyers Agent
3% 3% Not Offered

*In most cases, investment sales do not offer a co-broker fee. 

 

 

Sales commissions and fees to sell land (development example):

Total Fee Listing Agent Buyers Agent
8% 4% 4%

 

Commissions for land sales are generally higher than buildings. The main reason, land sales typically take a lot longer, the transactions are far more complex, and significantly more time-consuming. 

Fees for Leasing a Commercial, Office, or Industrial Buildings?

For commercial property leasing, the leasing fee is dependent on the type of space, the complexity of the transaction, and the rental price. Fee structures are different for industrial, office, & retail spaces. Industrial is a sliding scale based on NET rent. Office and retail are per square foot per year.

 

In general, all fees are paid for by the building owner or landlord at lease signing and commencement. All fees are paid upfront, not over the term of the lease.

 

Leasing commissions and fees for industrial and warehouse space (based on NET rent):

Year Total Fee Listing Agent Tenant Agent
1 10.5% 4.5% 7%
2 9% 3% 6%
3 7.5% 2.5% 5%
4 6% 2% 4%
5 4.5% 1.5% 3%
6+ 3% 1% 2%
Avg for 5 Year Deal 7.5% 2.5% 5%
Avg for 5 Year Deal
GROSS Rent
4.5% 1.5% 3%

*Fee % is based off NET rent, just can make it seem high. It is significantly less if you base the fee off GROSS rent.

 

No Tenant Broker

Year Total Fee Listing Agent Tenant Agent
1 7% 7% N/A
2 6% 6% N/A
3 5% 5% N/A
4 4% 4% N/A
5 3% 3% N/A
6+ 2% 2% N/A
Avg for 5 Year Deal 5% 5% N/A
Avg for 5 Year Deal
GROSS Rent
3% 3% N/A

*Not using a tenant representative generally doesn’t save you much money (1.5% + -). Most tenant reps will save you significantly more than the “added” cost.

 

 

Leasing commissions and fees for office space and retail space (based per square foot, per year):

Year Total Fee Listing Agent Tenant Agent
1 – 5 $1.50 PSF/Year $0.50 PSF/Year $1.00 PSF/Year
5 + $0.75 PSF/Year $0.25 PSF/Year $0.50 PSF/Year

 

No Tenant Broker

Year Total Fee Listing Agent Tenant Agent
1 – 5 $1.00 PSF/Year $1.00 PSF/Year N/A
5 + $0.50 PSF/Year $0.50 PSF/Year N/A

*Again, not using a tenant representative generally doesn’t save you much money ($0.50 PSF/Year). Your tenant rep should be worth the “added” cost in time & money savings.

 

 

Other Notes:

• The split is agent dependent, not company dependent. Example: XYZ company has two agents. One represents the buyer and the other the seller. In addition to dual agency concerns, the fee will generally be not be discounted and will be split evenly among the agents. List your building with CRE Partners and we can provide savings if both agents are “in-house”.

 

• Be cautious of agents who try to limit the marketing/exposure to “hoard” a full fee.

 

Pro Tip: CRE Partners can be more flexible when OUR PORTION of the fees are paid. In general, this can help “make” a deal if the tenant is lacking credit or the cash outlay is significant.

Tenant Representation Commission & Fees

Minneapolis Tenant Representation fees vary depending on product type (industrial, office, retail) and if it is a lease transaction or sales transaction. Please review the fee outlines above to determine how much a tenant rep receives in each type of transaction.

 

Other important things to consider:

• No savings are gained by NOT using a tenant rep broker.

 

• Not using a tenant representative generally doesn’t save you much money (1% – 2%). CRE Partners will save you significantly more than the “added” cost in time and money.

 

• Listing agreements are negotiated before the property is exposed to the market, therefore Tenant Representative commissions are in place before a tenant/buyer visits a property.

 

• Generally, you will not receive a discount by not hiring your own tenant representation broker because a full commission will be paid on every listing. View tables above.

 

Pro Tip: You should be aware of what your tenant rep broker is charging, as above-market fees will significantly affect your deal.

 

• Learn more about how above-market fees affect the deal and how CRE Partners helps you avoid them. View the disclosure section.

 

• Utilizing the services of a Tenant Rep will save you time and money throughout the entire process.

Renewal Fees for Leasing a Commercial, Office, Industrial, or Warehouse Space?

Considering hiring someone to help you negotiate your lease renewal? The fees involved depend on the type of space, the complexity of the transaction, and the likelihood of a relocation. 

 

In general, all renewal fees are paid for by the building owner or landlord at lease signing. All fees are paid upfront, not over the term of the lease.

 

Notes:

• Engage an expert that adds value, not cost to your lease renewal. We don’t want to negatively affect your deal, so we generally ask for 1/2 of a fee when negotiating a lease renewal. View the schedules above. Learn more.

 

Pro Tip: Know upfront what your broker is asking for, as above-market fees will significantly affect your lease renewal.

 

• Depending on your Landlord, we may require the tenant to pay a percentage of saving or enter into a consulting contract.

 

• We have flexibility. We can ask the Landlord to paid a wide percentage of fees, and depending on your needs, rebate of portion to help you generate upfront cash.

 

*Rebates are paid to the entity signing the lease, not an individual.

Offset Closing Risk, Reduce Fees

CRE Partners 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.

 

Ways to reduce fees

• Pay a retainer upfront. Once the deal is closed, we will rebate you that amount and more.

 

• Reduce our workload and/or cost. Show the building yourself, pay for some of the upfront marketing costs, etc.

 

• We constantly run into other firms that over-promise & under-deliver. To make sure we are being honest about the value of your building, we can scale our fees based on pricing.

 

• Depending on the deal and credit of the tenant, we may be able to spread out OUR PORTION of the fee to make a deal.

 

• Sign an exclusive representation agreement and get a rebate when the deal is complete.

 

*Rebates are paid to the entity signing the lease, not an individual.

 

NOTICE: ANY AND ALL FEE REDUCTIONS, REBATES, OR OTHERWISE MUST BE AGREED TO UPFRONT AND IN WRITING. REDUCTIONS WILL NOT BE AVAILABLE AT CLOSING.

Commercial Real Estate Commissions Fees

We Disclose All of Our Fees Upfront

Commercial Real Estate Commissions Fees

CRE Partners believes our fees are fully transparent and distinguish our commercial real estate services. We disclose all of our leasing and sales commissions upfront and on proposal/LOIs. If you don’t use us, make sure your Representative does the same and fight back against backroom deals and undisclosed fees.

Service Areas

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

Commercial Real Estate Commissions Fees

Interview and Hire Us!

Hire CRE Partners!

There are numerous benefits to hiring us as your representative, and it may not cost as much as you think. We will save you time money. We are expert negotiators, know the market, and can prevent hidden costs and problems. 

 

NOTICE: THE COMMERCIAL REAL ESTATE FEE OR COMMERCIAL REAL ESTATE COMMISSION RATE FOR THE SALE, LEASE, RENTAL OR MANAGEMENT OF REAL PROPERTY SHALL BE DETERMINED BETWEEN EACH INDIVIDUAL BROKER AND ITS CLIENT.