AboutJim Avancena Expertise I am best qualified to answer any questions that involve commercial leases, the complexities and inter-relationships of the myriad provisions that a lease may contain, and explain how they commonly effect a landlord or tenant in their day-to-day business operation. I can explain most matters that will come up during of the full lease cycle from standard industry practices regarding the lease acquistion process, concerns related to remodeling/improving the leased premises, moving-in, subletting or assigning the leased space, and a long list of other problems that may come up during the lease term. I have practical experience with most property management issues and resolving landlord and tenant disputes. Note that I am not an attorney and cannot provide legal advice.
Experience Twenty-eight years active experience in the commercial real estate industry as a licensed real estate broker in the Washington DC Metro area(DC, Northern Virginia & Maryland). I have been admitted (approved) by the Maryland and DC courts to testify as an expert witness on the subjects of Commercial Leasing and Property Management in the area of standard industry practices. I have had a business for the last 14 years advising virtually every form of business entity from large national corporations to the smallest ma & pa new businesses regarding a wide range of commercial real estate matters in addition to property management and commercial leasing.
Organizations Currently my three children keep me so busy that it is difficult to find time to participate in organizations.
Publications I publish a local commercial real estate newsletter titled: "Tenants First". My firm was the subject of a high profile Washington Post business section cover page (2.25 page)feature story on January 13, 1993; "Overcharging Overhead".
Education/Credentials BA in Political Science from Memphis University, and five years of study in the real estate development summer program at MIT. I was certified as a commercial property manager (CPM-IREM), and currently hold a brokers license licensed in Maryland and the District of Columbia.
Awards and Honors Routine, the same plaques and honors that most others in my industry have earned, none that are significant.
Past/Present Clients Past clients include: The World Bank, George Washington University, National Association of Criminal Defense Attorneys, US Department of Commerce, The American Benefits Council, K-Mart Development, many law firms, a national union, other major organizations, and many, many small business firms and retail operators that I am most honored to serve. I estimate more than 1,500 firms/organizations.
Question I am an agent for a company in Canada that own several condominium office units in a large building in central Florida. I lease these units. My question is this. My monthly commission has been 6.5% of the rental money I take in each month. I feel this rate is a little low and would like to ask for a 10% monthly commission but don't know if this is "out of the question". Can you tell me what the standard monthly commission rate is for leasing commercial property in the state of Florida?
Answer Summer-
There is no such thing as a "standard" commission, but there is likely a common practice in your specific market area.
Often there are factors that impact the standard commission that can justify a higher or lower commission rate.
For example, if there are 300 tenants in a large office project that you collect rent from each month, some might argue that you should be paid a lower rate of commission because of the volume of tenant's payments in the same location create some economies of scale and savings in the agents collection efforts as opposed to a situation where the agent collects only five rent payments a month in a small five unit property.
Imagine the fee you might want to be paid to collect from 20 office tenants a month in a ghetto office building versus twenty business tenants in Beverly Hills. One would likely be a much more challenging job than the other and justify a great fee.
You should compare what other agents are paid in similar properties in similar circumstances in your local market area to get a fair comparison of comparable commission rates.
