Exersizing Lease Options... The recent Dispatch, Should Brokers Earn Commissions on Lease Renewals? (Jan 13), generated a tremendous volume of comments. Last week's Dispatch, Lease Renewal Debate: Who Offers Most Value? (Jan 18), contained some of this reader feedback. Below are final comments.

Richard Henneberg with Cushman & Wakefield in McLean, VA, writes, "I would argue that the tenant broker's job during a potential renewal is even more important to the tenant/client. As any reputable tenant broker will attest, tenant renewals are usually difficult to negotiate, often for all the wrong reasons. ... Perhaps building owners feel that an existing tenant has no business working with a professional real estate broker on a renewal. Even if the landlord has provided quality services and amenities during the initial lease term, why shouldn't the tenant have the right to know whether or not the terms of a renewal are at market or better?"

Terry Thompson with PM Realty Group in Newport Beach, CA, writes, "Bottom line is that it all depends on where the relationship is and who has it. ... If the landlord is doing his job in servicing the tenant and building the relationship over the course of the lease with both the operational people and the lease decision makers (like he should be doing), then there should be no reason to pay a broker to assist a landlord with a lease renewal negotiation."

Brad Mills with Studley in Philadelphia writes, "Having been a landlord rep on office and industrial space for 7 years and a tenant rep for 8, I believe that the broker should be paid for doing his job. The days of total protection for brokers on renewals have ended in my market, and no broker today should expect to get a check without actively representing the tenant. On the other hand, the landlord should understand that the tenant rep will be paid a commission without issue if the tenant relocates. Therefore, it's short-sighted for the landlord to make a renewal less attractive to the tenant rep by stiffing or shorting him on the commission."

Kenneth Cantor with Qualico in Edmonton, Canada, speaks as a developer. "For those brokers that do feel a commission should be payable upon renewal, how many are prepared to refund a proportionate share of the original commission that was paid in full at the commencement of the lease for those tenants that do not stay in place for the entire initial term? Perhaps leasing fees should be treated as an annuity rather than an upfront cost with the owner assuming all of the transaction risk."

Craig Kammerer with Staubach in Palo Alto, CA, writes, "There are many cases where a tenant and landlord have negotiated a transaction and then the tenant comes to us based on our existing relationship to verify that it is a reasonable proposal. We typically take the assignment to market and in almost every case structure a far better lease (economically and related to other important deal terms), saving the tenant as much as 30% based on the previous proposal from the landlord. Competition is critical..."

--Peter Pike