Fees in Real Estate
FEEs in Real Estate
Typical Development Fees I have seen on ground-up MF development are:
- 3% of the total cost;
OR - 4-5% of hard and soft costs;
OR - 5% of hard costs
Prop Management Fee is 2.5-3% on institutional deals
Prop Management Fee is 5%-7% on sub-institutional deals (including staff)
The CM fee ranges from 1-1.5%
Asset management fee ranges from 1%-1.5% of gross collected rents.
Acquisition fee ranges from 1-2%.
GC fee is is typically 5-6% of hard costs on projects but can go down to 3% on very large jobs.
For value-add projects, the CM fee is typically 10-12%.