What does a typical 15-25 year ground lease leasing commission look like?
Posted a few months back to get some advice regarding how to proceed with a property our family owns. We went with looking to hire one of the best leasing brokers in our area that represents various national brands.

We are currently negotiating the listing agreement, but are not sure on what the typical leasing commission structure looks like for something that goes beyond 10 years for the initial term.

Right now we are thinking of proposing the first 60 months at 6%, next 60 months at 3% and capping the remaining commission at 180 months with final 60 months being 1.5% (180 months even if lease is for 240 or 300 months). If it makes any difference, we anticipate the tenant to be a QSR user, but would love to hear the feedback on other long term leases like for Walgreen's (20-25 year initial term).

We want to be fair, but have no idea what is customary. Speaking to our attorney who does real estate contracts, he's said that most leases even if they go beyond 10 years in the initial term, Landlords typically cap the leasing commission to the first 10 years. The attorney is currently working  with another client doing a national QSR lease and capped them at 10 years commission.

Thanks in advance!
[{"id": "hv33o2n", "text": "Ah to be nickeled and dimed over like $30k on a 7-figure NNN GL transaction. The joys of being a broker. \n\nYour attorney is right. Usually capped at 10yrs. What has your listing broker of choice proposed? Generally fee structure is provided by the one earning the fee\u2026", "replies": [{"id": "hv36he9", "text": "Knowing the context now, the broker's own listing agreement had capped itself at 10 years 60 + 60 at 6% and 3% respectively. Then when I had our attorney email it back, the broker was like \"oh, it can't be capped at 10 years. Most ground leases are gonna be 15+ and the other side will want to get paid too beyond the 10 years.\" I told him that was the form he submitted over and the attorney was just cleaning it up. So that's where we're at. Since it's our first ground lease deal, we just weren't sure if the broker was BSing or if what he's saying was true, but seems like both you and MC20177 agree with the 10 year cap.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hv33r3b", "text": "It\u2019s so hit or miss. Most of the time its 6% years 1-5 and 3% years 6-10. Even though that is designed for shop deals I see it get enforced for pad deals. Drives me nuts. If you can get 1.5% for the rest of the primary I would take that as a win. We come out of the gates asking 4% for the entire primary term, but really minimal expectation of ever getting it, but our client is best in class. \n\n- I do quite a few drive thru ground leases for tenant rep in Bay Area CA.  25 or so in negotiation as we speak, and work on listings with major REITS.", "replies": [{"id": "i5upmdt", "text": "Any advice on prospecting for ground lease listings and/or REITS?", "replies": [], "depth": 2}], "depth": 1}, {"id": "hv4gx4w", "text": "As a CRE developer I aim for 3.5% capped at ten years.", "replies": [], "depth": 1}]