Investment Sale Commission
Somewhat stupid question, but this isn't a space I play in very often, so hoping someone has some insight. What is a market brokerage commission on a "sub-institutional" investment sale? $20-50M price, office/industrial, major 2ndary market (Phoenix/San Diego/Austin).
Most brokers are going to ask for 5% but I’d be happy to do it for 3%
I'm not sure about office/industrial but this is what my firm charges for multifamily, usually get 3-4% on deals of that size.
This was a bad joke - anything $20m and above I’d have a hard time believing you could get above 2.5%
Really? I guess above 50m, yeah, but in that 20-30 million range we tend to hit 3% pretty regularly.
LOL, sounds like a standard ReMax deal! (yes, I know you are joking...)
I thinks this really depends on "sub" institutional it really is.... If this is still "class B" office/industrial with stabilized rent rolls (can have some vacancy/value-add angle)... I think you could find legit brokers at major firms who would take this for 1%, I mean a $200-$500k pay day is plenty. In some markets, you may find those willing to take at 75 bps or even 50 bps (not sure if a good idea, but its a competitive world).
If this is class C or heavily vacant or other wise more "non" institutional, then I think 1% is prob a floor and you should budget up to 3% with some incentives.
This price range is still pretty big regardless of asset class, so I think you still get a pretty competitive rate unless really sketchy on some dimension (like will be super hard to sell)
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