Relationships Over Time... Who "owns" the client -- the broker or the brokerage firm? This was the question raised in two Dispatches late last year -- Broker Wars: Whose Client Relationship? (Nov 30, 2004) and Broker Wars II: Who "Owns" the Client? (Dec 7, 2004).

But what about the developer of the property? Why should a broker earn a commission if a tenant renews a lease years down the road -- regardless of whether the broker has maintained a relationship with the tenant?

That's the question raised by Kurt Sertl of Gallina Development Corporation, a developer and manager of office and industrial space in Rochester, NY.

Sertl writes, "Does the tenant renew because the broker placed them with a good landlord or because the landlord has done a good job servicing the tenant during the term of the lease, and the property is well located for their business needs, etc?

"Obviously, I feel it is the latter, and the broker should not be entitled to further compensation because I have done a good job honoring the terms and conditions of the lease, and my property well serves the needs of the client.

"The broker is paid upfront for presenting the client to the developer, I don't think the client should represent an annuity to the broker...Many times the broker is calling me to ask what the terms of the renewal are so they can send out a bill."

For the record, Gallina does pay half commissions for renewals per lease options. What do you think is fair?

--Peter Pike