What's the commission on a land lease?

In Leasing Property - Asked by Peter M. - Apr 12, 2013
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Rick H.
Palo Alto, CA

I have done a few in excess of 30 yrs. I looked at it as a sale in both cases first valuing the property based on comparable sales then applying the market commission sale rate. The number obtained using usual lease commission schedule (in my neck of the woods) 6%, 5,5,4,4,3,3,3,3,3,2.5,2.5,2.5,2.5,2.5,1,1,1, etc. would take the prospective commission to unrealistic heights. Treating like a sale more in line.

Apr 12, 2013
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Mike R.
Gainesville, FL

Negotiable on a case by case, or deal by deal, basis, but generally tied to the overall value of the deal.
Mike Ryals
Bosshardt Realty
Gainesville, Fl

Apr 13, 2013
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Peter M.
Niantic, CT

Rick, Mike,
Thank you both for your insight. In these deals, are you stating you want to paid in full at the time the contract is signed, not tied to the performance of the lease? I certainly think that is important and all a part of the risk that the landlord is taking on the tenant.
Peter Mitchell

Apr 13, 2013
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Rosalind N.
Warwick, RI

As stated in prior answers it does depend on a variety of circumstances.
In some transactions we ask for the 1st term up front and then a reducing % paid yearly. We do, hang in there, with our client landlords.
If we are co-broking we want our fee up front since we have no history with the landlord.

Apr 15, 2013
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Robert H.
Hattiesburg, MS

10% paid up front.

Apr 20, 2013
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