Lease space search deal turns into Building Sale- fee? (flat fee, broker)

[msmith8441]

I engaged a commercial realtor to find a tenant for my building. after 5 different showings a potential tenant they walked thru came back and asked to buy the building. I have no agreement with realtor for that service (Building Sale), but they are asking for 6% fee to do the deal.
The contract to sell lists them as a Transaction Broker... everything I have read says they are entitled to a flat fee (what's reasonable?) They did nothing to market the building for a sale- it just walked in the door - literally. Classic definition of a serendipity!
I feel they "tried" to lease the empty space (5 showings over 6 months) for which we do have a typical commission agreement.
If I estimate the sale transaction paperwork will take them 40 hrs and estimate a T&M rate of $150/hr for their 'services' ($6000) and agree to pay them $1/sf/yr for the lease deal (which they did NOT fulfill) for a 1500 sf space for 3 year lease (what I desired them to find) = $4500 commission - so I pay them 10,500 for this entire deal... is that fair? Comp'ing them for efforts unfulfilled plus a reasonable fee to conduct the Transaction Broker services?

Thanks in advance. Mike

[2bindenver]

If you are thinking of selling, find your own broker.

[Therblig]

Yes, most RE fees are grossly inflated in a market that takes little or no time and effort to close a sale.

They're structured for an era when a salesperson or broker had to invest a month or more, plus pictures, plus all listing and promotion costs, plus any number of showings etc. With today's market of offers within a week on basic photos and an MLS... $10k and more seems a tad excessive.

If all they did was bring you a buyer after making a reasonable attempt to find a lessee, I'd offer a token bonus both in good faith and to forestall an extended battle over a $25,000? fee for nothing much.

[StealthRabbit]

Offer them a flat fee, commensurate with how much they would have received for the lease to this client.

If you plan on selling... DIY, but do it right, and quick.

RE attorney will cost you $500 / hr
realtor may cost you $30k / hour and they can't provide legal advice.

Just closed transaction #39 w/o a broker / agent. Many have been commercial props.

I do it in my free time, often as a volunteer for others too.

[Therblig]

Originally Posted by StealthRabbit

Offer them a flat fee, commensurate with how much they would have received for the lease to this client.

This, but I'd have the lease-broker agreement searched for gotchas. It's not unheard of for a to-rent/lease property to be sold and I'd bet there's a clause or two covering at least this much in 'cancellation' costs.