Tenant-Owner/Broker/Builder - structuring Win/Win/Win partnership

[Josh Cochran]

What is a win/win/win model look like?

Tenant-Owner

+Pros

- lowers risk

- motivated broker and builder

+Cons

- sharing rent $ with broker and builder

+ Questions

- Should this person get a 5% equity bonus as anchor tenant?

- Should this person pay reduced rent rates?

Broker

+Pro’s

- gets land commission

- gets commissions on leasing vacant suites

- gets built in rents from owner-tenant

+Question

- Commission rates for broker at full fee for land purchase and leasing? Or discounted? If so, what’s a popular number?

Builder

+Pro’s

- Gets project with full 7-8% fee

- gets built in rents from owner-tenant

+Question

- Fee for builder at full fee, or reduced discounted?

- Or, is fee taken as equity in the project? If so, is there a tax benefit there?

Thanks!!