Ground lease verbiage. Can someone explain this to me?
*"This pad needs to be a ground lease for under $700,000 NNN annually from a curb-in condition, with TIA to contribute towards the bldg. construction."*

I'm representing the inquiring tenant. Listing agent sent me this...what do they mean by "ground lease for under $700,000 NNN annually" mean? The "under" is what's confusing me. I've never done a ground lease and would rather not announce my ignorance prior to any negotiations.

Also, would reasonable TIA in this case pay for 100% of the external structure and mechanicals? What's a realistic range for the tenant building themselves?
[{"id": "ip2k0n4", "text": "Thanks for your response. My questions really revolves around the word \"under\". Any insight in to that.\n\n\"Listing agent sent me this...what do they mean by \"ground lease for under $700,000 NNN annually\" mean? The \"under\" is what's confusing me. I've never done a ground lease and would rather not announce my ignorance prior to any negotiations.\"", "replies": [{"id": "ip2qugk", "text": "Would you prefer you announce your ignorance once negotiations have begun?\n\n\nRefer this out. You shouldn\u2019t try to stumble through a multi million dollar negotiation pretending you know what you\u2019re doing. \n\nTo answer your question: Under means the lease will top out at $700,000 NNN annually. How far under $700K you go will be dependent on the terms negotiated. More TI money probably means higher rents, etc.", "replies": [], "depth": 2}, {"id": "ip38aaw", "text": "Under as in \"not to exceed the amount of\"", "replies": [], "depth": 2}], "depth": 1}, {"id": "ip4lkm9", "text": "Do you have a broker who can help guide you? Don\u2019t give up on this. This is how you learn and put 100% into it. It\u2019s the only way you grow in this business.", "replies": [], "depth": 1}, {"id": "ip4r0tm", "text": "700k is the rent before expenses - I assume but would ask for clarity. I don\u2019t think it\u2019ll include expense because those would fluctuate.\n\nIt\u2019s a land lease - if the land is vacant sounds like they want a services paved lot. \n\nLand leases have high inducements usually - I\u2019ve seen anywhere from 50 to 150 per sq ft.\n\nI\u2019d legit call the other agent an ask them if they have expectations on the inducement - I hate blindly negotiating", "replies": [], "depth": 1}, {"id": "ip6kc3e", "text": "That is a very large ground lease amount. Get an attorney experienced in real estate. Check with a broker the ground lease market and whether you are in range of comps.", "replies": [], "depth": 1}, {"id": "ip6pflr", "text": "Ask them to explain \u2026 you will not sound ignorant to ask for clarification", "replies": [], "depth": 1}]