Commercial Lease renewal

Discussion in 'Property Management' started by sparklestorm, 18th Sep, 2019.

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  1. sparklestorm

    sparklestorm Well-Known Member

    Joined:
    25th Jul, 2018
    Posts:
    90
    Location:
    Sydney
    Greetings friends,

    I hope this message finds you all well.

    Just wondering, what is the average rate for a commercial lease renewal and is this charged when the option to exercise further lease term is effected?

    Thank you very much
     
    sparklestorm, 18th Sep, 2019
    #1
  2. Shady

    Shady Well-Known Member

    Joined:
    20th Aug, 2015
    Posts:
    523
    Location:
    Sydney
    In my area it's 11% of the gross average annual rent for a lease term of 3 year or less.
    It goes up to 13% for a lease term of 5 years. I've seen agencies start putting their fees up by a percentage point or so.


    If I manage the property I dont charge anything for a lease renewal as I believe it's all part of managing the property....But I have seen other agencies charge 6% for negotiating a new lease with the sitting tenant..
     
    Shady, 18th Sep, 2019
    #2