Agents leasing and management fees on commercial property

Hi,
I'm new to commercial property and believe the leasing and management fees are very different to residential. Could someone please give me a rough guide on what percentage an agent would charge to lease a property.
Currently I have an agent wanting me to sign appointment for hardstand leasing fee for 1st years net rental plus GST -
- up to 1 year 12%
- 2 years to 5 years 15%
- 6 years to 10 years 17%
- Prelease commitments 20% 1st years net rental (not sure what this means???)

Compared to residential it was a bit of a shock.

What are commercial management fees usually charged at for future references as I have just sold an industrial block and looking to invest in another commercial property.

Thanks

Kerri

 

Not sure what the current rates are for Qld but I commonly see 11% + GST for 3-5 year leases in NSW. Have they separately listed the costs for marketing or are they absorbing that into the rate?

Unless the lease if physically longer ie not 5 years plus options, it is only the term certain (not the option period that you should be paying for as the tenant hasn't confirmed that they will exercise the option).

Likewise, management fees will vary depending upon the asset/portfolio - I have seen anywhere between 3% for large commercial portfolios up to 10%+gst for a single premises bringing in less than a small resi unit.

 

Kerri, i think you are quoting leasing fees.
yep, i am paying similar in queennie.
actually, more with one agent, i upped it to 20% of one years rent for a 5 year lease.
Do the math, incentive for a longer lease is way better value

 

Commercial is more costly than resi. But the rental is higher. They are different markets that are very different

 

Hi Scott. Just wanted to check if the leasing fee isn11% plus GST of the first year rent or every year? The language in my management agreement isn't exactly clear. Thank you

 

@Cindie - the Letting fee is 11% of the first year's rent.

Management fee is a separate rate.