Deal guys specifically - what commission rates are you currently charging/seeing in west coast markets? Brokers, what are you asking, and acquisition/disposition folks, what are you agreeing to pay? I'm trying to get a feel for the different rates in different markets across the west for different deal sizes (i.e., what you're seeing for a 50M deal in LA vs. similar size in Seattle, if there's a spread) similarly looking for size differential ($100M vs. $25 M, etc. market agnostic - looking for a spread here). Any input is appreciated. We generally know what the marketed rates are, but curious as to off-market stuff. We are trying to remain competitive and work in good faith to pay a fair number without getting gutted. Focused on capital markets/investment sale transactions more so than leasing.
All input appreciated.
Those bigger deals are usually flat fees and not a %. I saw a $100mil deal paying each broker $300k. I have a client that does land. He tends to pay a bit more in broker fees because it's land. He had a $15mil deal in escrow that he was selling. The broker, representing both sides got a generous 3.5% gross commission. The deal fell out but that would have been his commission.
Whether it's $20mil or $100mil, the most I"m seeing brokers make is about $300k a side. This is why I'm a middle market broker doing deals in the $2mil to $7mil range. There's tons of deal flow at this level and the commissions can be 4-5% gross.
$3.5mil deals pay the bills...$30mil deals pay off the bills.