wow, i really thought it was gonna be 0.25%. never even considered 0.08% as possible. shit, for the fee I wouldve let Bill Palmer handle it. hes in Sac, hes handled tons of this stuff and hes the lowest fee (and hes former cbre). cbre is definitely on the govt train, arent they handling the state of michigan too? what brokers do they have on the team? has to include stacom/shanahan/tighe out of nyc for a "global scope". otherwise, palmer makes way more sense. to me at least.

I got a blast a while ago from CBRE SoCal advertising a huge tract of land in the middle of the California desert somewhere for something like $300K. There were 5 brokers on the damn listing. Once that gets cut up, they might have enough left for a double-double and fries at INO.

Tough time to be an investment broker — I'm sure banks and anybody else selling a decent size asset is looking at this with one eyebrow raised…

definitely. i see it all the time, especially at cbre. the interesting thing about fees is this – over the last 5 years or so cbre, jll and M&M management have been internally discussing brokerage fees moving to an I bank type platform. jll already does this on some national leasing platforms. pay the broker an annual salary, say $150K, then they are responsible for bringing in fees and earning a big bonus. in the end, the firm ends up with better splits, but the brokers arent in feast or famine mode and have quotas that they have to meet to be employed. management at those three think thats the future of the industry. (well, i say that from having spoken with 1 or 2 people at each. who knows when or how they will implement that idea.). definitely pays for the younger guys, but a senior agent would want to go full commission, i assume. i wont be surprised when new hires are put on these plans in the (possibly relatively near) future.

the other thing i see is that they assemble a "team" and then one guy does all the work. but they all get a cut. i love that. thats when you call each guy and try to play him for info the other ones wont give out. you should see the co-op quotes you get out of some of these brokers when you call them in succession. funny stuff.

So you consider a $1.6 million fee "working for free"? Sale/leaseback with gov't entity is easiest transaction to run, very basic underwriting and few moving parts

Well, obv $1.6M is not free, but it's a drop in the bucket compared to what they would have likely bid 2-3 years ago. Divvy up the commish between x number of brokers, financial analysts, marketing personnel, CBRE overhead, and for a $2B sale, it's a pretty skinny fee.

I’ve been reading a few posts and really and enjoy your writing. I’m just starting up my own blog and only hope that I can write as well and give the reader so much insight.

I would think Kevin Shannon has enough of a "global scope" that he can handle it himself. I also don't seem him cutting anyone else in on the process, especially not for 8 bp.

I have used both Kenvin and Bill to sell buildings for me…they are awesome to work with and very talented….JLL obviously is completely clueless asking for $17M commission…..pass the pipe