How Much Do Commercial Agents Charge?
What do commercial property agents charge?
Typically, a commercial property agent charges between 7% and 12% of rent per annum on a letting and between 1% and 3% of the purchase price for a sale.
Fees do vary from agent to agent and the level of service and professionalism received does tend to correlate with an agents fee structure.
Research, negotiation and informative talks are highly recommended and your commercial property real estate agent should clearly present their fees incurred for their services. We recommend using a reputable, established commercial agent with a great track record, such as Shepherd Commercial and suggest gathering fee structures from different agents in your area before you decide who to instruct.
On a letting of a commercial property, your commercial agent may charge anywhere from 7% to 12% of the headline rent although the ultimate figure depends on a variety of factors such as size, timescale, workload and the specific type of commercial asset in which your agent is sourcing your tenancy for.
The country in which your commercial property is located in will also play a factor in what your agent will charge. In countries where competition and quality of service is high, you may find dwindling fees as firms fight for their market share of instructions, where as in emerging economies with a relatively low saturation of agents, the select few high quality companies will charge higher as they dominate the market.
For the sale of your commercial property, an agent in the UK is typically charging between 1% and 3% of the purchase price they achieve for your property.
Again this figure varies under certain socio-economic factors but the range is slightly more solidified in sales fees than lettings.
The sale of the property can take longer than a letting, specifically if a purchaser is obtaining the property with lending rather than a cash purchase, and agents have to carry out more work in general to secure a sale. Some agents may charge less if a property is an 0ff-market transaction and their is a purchaser in waiting for the asset.
Commercial Property Management
In general, a commercial property agent will charge between 5% and 10% of the headline rent of a property to manage and maintain the asset on behalf of a client.
Depending on how much work is involved in the management of the property will determine how much your agent charges for their service. Workload can range from general rent collection to full management with renewals, tenancy sourcing, maintenance management and security all included in an agents package.
Management from firms such as Savills may incur higher fees as the company operates and handles larger, higher income assets on behalf of huge estates and investment firms. These upper market agents usually won’t manage for single properties with low square footage and rent roll.
If you’re looking for commercial property services in the Midlands, across the board from an agent with over 30 years establishment. Call us on 01564778890 or visit our contact us section of our site.
Fees for services such as rent reviews, renewals and advisory services will vary from commercial agent to agent and you’re best to speak to multiple agents to see how they may assist.