asked 2012-03-02 11:48:12 -0500
I am putting a ground lease deal together and could use some general guidance and information on lease structures and typical commission structures. Specifically, how do you price the lease and what are the best practices for lease terms.
answered 2012-03-02 11:58:43 -0500
I would highly recommend involving a real estate attorney in the deal. Ground leases can be tricky and legal counsel is a must. As far as structuring the deal goes, you will need to determine a market value for for the land and apply a rate of return to to set your base rent. Most ground leases that I have seen bump the rent every 5 years based on an index like CPI.
answered 2012-03-05 13:22:54 -0500
I just finished a ground lease deal. I charged an upfront fee on the first 10 years of the lease. There are many ways you could structure this but I would absolutely avoid a deferred commission over the term of the lease.
 | Register for Email Alerts |
 | |
 | Follow @askCRE |
 | RSS Feed |
Asked: 2012-03-02 11:48:12 -0500
Seen: 72 times
Last updated: Mar 05 '12
