Just to be clear... any discussion of commission percentages are PURELY for educational, and discussion purposes only!

Our firm primarily operates in residential properties, and residential (SFR & 1-4) income properties. However, we now are looking to represent clients in commercial transactions as well.

My question relates to average commission structures and cooperating brokerage agreements in commercial transactions.

I know that commissions usually vary by region / market / and property type. We are looking to reinvest proceeds from local multifamily listings into markets and regions that make financial sense from a cash flow perspective, and, theoretically, prior to any discussions we would want to make sure that we're at least in the right ballpark prior to any commission discussions; whether multi-family, strip malls, office, etc.

Any comments would be GREATLY appreciated.

Thanks,
-Motoscott

Commercial is not covered by RESPA,that is the residential side of things.Pretty much in commercial as far as commission anything goes.Some will list there property with you,and others will say bring me a buyer and i will pay you a fee but i do not want to list.Developing shopping centers is a whole other ballgame.You can make money leasing the spaces when they are finished,and or also make commission and the purchase of the land assemblages.Standard in our area is 10 percent commission with a 5 co-op to the selling agent.Although if it's a really big piece of land going commercial soem agents will do the total commission at 7 or 8 because the commission is so huge plus at a major intersection they stick a big sign there and get calls for other busienss off of it.

Super Realtor, thanks for the insight! Most of our clients are not looking for development deals; but rather for properties that deliver stable cash flow. Development can be great, but not for our clientele.

I also tend to stay away from the TIC deals; the promoters make it incredibly easy to get in, but it's kinda difficult to get out.

However, I am VERY interested in good B-level and up multi-family, retail / or anchored shopping centers, or small office.

As our business is now generating more clients seeking commercial cash flow, we especially seek to work in cooperation with local commercial teams in various areas. Didn't expect 10% on development; but yeah, that would be respective of the risk. What about the deals in the sub $4M range? not development deals, but rather, decent, existing properties, with good leases in place? Any more insight on that? We're seeking better CAP rates than California; so pretty much any market that responds to financial reason makes sense to us.

Finally, the key goal in representing our clients, is not to be shown just a couple listings; but essentially we would seek to work with Realtors operating as buyer's agents in various markets on a co-basis with our local agents; - so a split on the buy side. I'd much rather do it that way, then show my clients the stuff on Loopnet that everyone in the local markets has already passed on.

Super Realtor, thanks again for your insight. Any more comments out there on commission structures in commercial; and cooperating brokerage agreements?

Super Realtor, that is the funny thing. Most residential Realtors think that Commercial Realtors must play by the same RESPA game they do. They are always surprised when I bring that up!