what would a typical commission be on a parcel of land be that is leased?

Listing a parcel of land for sale or lease. If I end up doing new construction for tenant would the commision be paid on just the land portion or the land and the new building?
If the commison is on land and building would it be better to just lease the land and let somebody else build and lease the building
In Leasing Property - Asked by Joe W. - Feb 1, 2012
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Michael E L.
Broker/Agent
Broken Arrow, OK

Based on my background as both a Commercial Broker and Developer, I think the answer lies in what you brought to the table. If you can do a land lease, in my opinion, it is a much better, long term investment. The trouble that typically arises, the lender on the building would want you to subregate your land to the mortgage on the building. If the building becomes upside down, so does your land, or you are now forced to satisfy the first mortgage to save your land. So the answer lies in who your tenant will be and their strength. On the commission on the building, I would say if you "caused" the building deal to come forward, you should get a commission on the entire deal. Your overall commission might be a lesser rate on the entire deal, but I certainly wouldn't take the tract initially.

Feb 3, 2012
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