A: It Depends!

It is very rare that a commercial property agent (or for that matter any residential estate agent) will quote their charges before seeing a property and knowing what’s involved. And when asked on the subject “How much do you charge” the answer you are likely to get is – “It Depends!”

And it does Depend. Any respectable agent is unlikely to commit to a fee quote until they know what they are dealing with, on what basis they will be appointed and what service they are expected to provide.

However, traditionally agents have charged a percentage of the sale price or annual rental. Leasing fees typically range between 7.5% and 15% of the first year’s rent and for sales transactions, fees generally range between 1% and 2.5% of the final sale price

So what does it depend on?

Estate agency work is governed by legislation and as such agents are legally required to set out the basis of their appointment, fees & how these are calculated and any additional charges. The fee the agent will agree will be influenced by:

  • Whether the agent is appointed exclusively or non-exclusively
  • How long is the agency appointment for?
  • What marketing costs can be reimbursed? Some agents include a board in the fee but with commercial agency it is common practice for agents to charge for a board
  • What additional work is the agent including within their scope? For example many landlords or sellers assume utility meter readings are included within the agent’s work, but this is also not common practice!
  • Is there a level of reporting required? Many larger property companies and institutions require regular marketing meetings and reports.
  • And also loyalty. Agents love repeat business. So a good and longstanding relationship with your chosen agent is likely to be rewarded in discounted fees!

Traditionally agents work on a ‘no win no fee’ basis so much of the work they do is highly speculative! As the costs of marketing property continue to rise, more and more agents are now looking for part of the fee upfront and abortive transactions to be covered.

When deciding on an agent it is not just about the fee but also the Terms of Engagement. These will outline the basis of the agency work to be carried out and other costs. Read these carefully before signing and be mindful of the small print!

There are many unprofessional and inexperienced agents who will offer cut price fees and vague terms of engagement just to get the instruction over the competition or just to get a board up. This is a common practice so beware!!! Such agents are unlikely to have the expertise, knowledge or tools for the job.

So Why Choose Us?

When it comes to leasing or selling commercial property in the UK, transparency and professionalism is key. At MJM we believe in providing clear and competitive pricing for our agency and professional services, ensuring you receive expert advice, guidance and maximum value for your investment.

Our fee structure for agency work at whichever level is agreed will include:

  • Property inspection and measurement
  • Market analysis and property valuation
  • Recommendations on pricing, terms and marketing
  • Professional marketing, including listings on top property portals
  • Conducting viewings and negotiating lease terms
  • Liaising with solicitors and handling due diligence
  • End-to-end support until completion

With our extensive experience, local market knowledge, and tailored approach, we ensure your commercial property achieves the best possible outcome—whether you’re leasing to a high-quality tenant or securing the highest sale price.

Get in Touch Today!

Are you looking to lease or sell a commercial property? Contact us today for a Free Initial Consultation and find out how we can help you maximise your return.

📞 01277 289150
📧 enquiries@mjmpropertyconsultants.co.uk
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