Expert: Stephen A. Cross, CCIM - 3/4/2009

Question
Is it typical in a commercial lease for a landlord to pay a commission on CAM
and utilities, or only on Base Rent. It is my understanding that in Cincinnati
(and probably elsewhere) that commissions are paid on base rent and not on
utilities and CAM. However (part two?), if the standard commission is 6% that
commission is not normally split with another broker representing the
building here. Are these the norm or do you find most landlord's pay
commission on base rent and CAM?

Answer
Michael:

Part 1: In my experience, those property owners that pay commissions based on a percentage of the gross value of the lease pay on the Base Rent only, and generally for just the initial lease term.

Part 2: I work in Phoenix, where the listing agents typically share their commissions with the procuring cause. Many times the procuring cause receives more than 50%.

Very truly yours,

Steve
Stephen A. Cross, CCIM
CROSS Commercial Realty Advisors

8410 E. Via del Parque
Scottsdale, Arizona 85258

480-998-7998
steve@crossrealty.com
www.crossrealty.com