business men negotiating at table

Commercial Real Estate Agents – Ways to Negotiate Fees and Commissions Today

In commercial real estate, the negotiation of commissions can be a regular problem.  The client may be looking for the best deal on fees, but the reality is that a successful sale or lease in this market only comes from the real effort on the part of the agent and for that, the client should pay a good fee.

Before saying too much more, I will mention that the best listings for this type of market are exclusive listings.  Open listings are a complete waste of time and any sale or lease that you get from open listings are a product of luck.

If our clients want the best results they should appoint a good real estate agent on an exclusive agency.  The agent can then get into the strategy of marketing and promoting the property the right way.

sales team meet and greet agents

Commission Targets in Commercial Real Estate Brokerage

So, what is a good commission for selling or leasing?  From location to location the commissions will vary and you will know the standards that apply generally in your local area.  Don’t give in to the requests of your client and discount the commission to any great degree.  If you give discounts the end result is usually:

  • Less focus on the property
  • Tarnished relationships with the client
  • Low marketing effort
  • Less market penetration
  • Generic marketing activities

Any saving that a client thinks that they will get in lower fees and commissions will be more than offset by committed marketing efforts on the part of the agent.  Commitment by the agent brings better target marketing, more drive in the prospecting and inspecting process, and better negotiations.

To offset all of this problem, show the client exactly what they will be getting from you as the exclusive agent in marketing the property.  Give them specific marketing strategies that will be personally pushed regularly to get the enquiry moving and the inspections underway.  The client wants results.  Sell yourself and your services around the results and how you will achieve them.

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