Expert: Mike Fortunato - 6/9/2007

Question
we have a shopping center with our grocery store as the anchor[34,000 sq ft]. the rental area is 10,000 sq ft with 4 tenants. The leases are triple net and the cam's are all actual costs. Some of the tenants say my management fee of 5% is too high.  Is there a published report of fees for the Northern ky / cinti Ohio area that I can show them that I'm in line or a good deal? thanks in advance for your help.  

Answer
I don't know of any published report you could use. Out here in California, 5% is not unreasonable (management fees range from 3 to 5% for that type of property). Of course, that's for full service management by a professional firm. If you're self-managing, then maybe 5% might be on the high side.

Mike F.