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Leasing Locker

Atlanta

Procurement fees, with the first-month multiplier.

Atlanta office deals are not a flat four percent of aggregate rent. Treat them that way and the capital outlay, the payback, and the ranking all move.

In this market a procurement fee is commonly a percentage of the first year’s face rent, plus a multiplier on the first month. The percentage captures the annualized relationship; the multiplier captures how the first installment is actually papered. Generic calculators flatten both into “commission %” and then wonder why the broker’s number does not match.

A worked stub

Take a 40,000 SF Atlanta office, $28.00/SF, 84 months. Year-one face rent is $1,120,000. A 4% procurement fee on year one is $44,800. A 1.0× first-month multiplier adds another $93,333. The commission line is already past $138,000 — before anyone has talked about a 4% of total consideration, which this is not.

That difference lands in landlord capital outlay, not in “concessions to the tenant.” Mixing the two is how a tenant-rep deck overstates the package and an owner deck understates the check they are writing.

What else Atlanta deals need

Base versus gross free rent. A first escalation that can wait until after abatement. A base-year stop with expense growth. Whole-dollar views so a 37,750 SF plan is not punished against a 41,000 SF plan on rate alone. Those are first-class inputs in Leasing Locker, not cells you hope nobody touches.

Ready to run the next deal with clearer numbers?