Please provide a commission calculation worksheet for the following transaction. The worksheet should include both the annual amount of commissions paid and the total commission the landlord will pay all brokers.
The terms of the lease are as follows:
Property – 1700 Pennsylvania Avenue, Washington DC
Tenant – ABC Company, a technology relocating from 1400 K Street, NW
Landlord – BIG Real Estate Company, a National REIT which recently purchased the building
Lease Type – Full Service Lease (including a base year for operating expenses and real estate taxes)
Area – 25,000 sq. ft on the 3rd floor of the Property.
Lease Commencement Date – July 1st, 2024
Rent Commencement Date – January 1, 2025
Lease Term – 15 Years from the Lease Commencement Date
Base Rent – $50.00 per sq. ft.
Annual Base Rent Escalation – 2.5% per year
Rent Increase – $3.00 rent increase in years 6 and 11 in lieu of the Annual Base Rent Escalation
Rental Abatement – 6 months of free rent in both year 1 and year 2
Tenant Broker’s Commission Rate – 3%
Landlord Broker’s Commission Rate – 2%
Payment Terms – The 1st half of the commission will be paid upon lease signing and the 2nd half will be paid upon the Lease Commencement Date.
