Landlord Deal Points to Negotiate for Ground Lease LOI ?
Was wondering what most Landlord's negotiate for the ground lease. Currently the LOI wants Landlord to pay for demolition and to be responsible for installing utilities and all fees like impact fees, development charges, traffic utility, etc.

Do Landlord's usually just make all the above the Tenant's cost instead? Is any rent paid during the construction period (would imagine it's heavily discounted since nothing is there yet) or only when the tenant opens for business?
[{"id": "inkfwbb", "text": "Will you have a mortgage on the property? Make sure that you have the right to do so. Many ground leases prohibit this, as it is helpful for the tenant to get their own mortgage if there is no mortgage on the fee.", "replies": [], "depth": 1}, {"id": "inkk0ws", "text": "Are you rep\u2019ing Landlord or Tenant? I\u2019m assuming LL. If so, is your LL attempting to maximize revenue or limit expenses? How sophisticated is the tenant? National? This is standard language. All depends on who you are dealing with and your clients objectives in the transaction.", "replies": [{"id": "inkont8", "text": "In this case, my family LLC would be the LL. Never done a ground lease before, but we would want to achieve both higher rents received and limit financial contributions (if any). The tenant is a national QSR. What would you say is typical for this type of tenant?", "replies": [{"id": "inm4a4p", "text": "Ground leases can be complicated , especially if you deal with sophisticated tenants.\n\nBefore getting into a lot of details (utilities, mortgages, negotiations etc) you have to prepare a simple proforma including:\n\n1) how much revenue (over the term of the lease) you expect to get\n\n2) how much capital you are willing to invest upfront if needed.\n\nOnce you have a good idea about your expectations it's easier to have a negotiation with the tenant, since everything is negotiable. \n\nThere is some preparation work that you could do - getting some estimates for any of the work that you anticipate will happen , regardless if is done by LL or tenant. If the tenant will do all the work this will be factored into the lease rates anyway.", "replies": [{"id": "inmmy7e", "text": "This is very helpful in getting some general sense of what we should prepare for. Do you have any rule of thumb for estimating some of the expenses or how one would negotiate out those expenses?", "replies": [{"id": "innu8xg", "text": "1) LL pays for some expenses\n\nI don't know your market or some specifics about the land but this is what I would do: ask a real estate developer in your area to provide you some high level estimates for the following work:\n\n\\- price / linear meter (linear foot) to run a water line/sewage line\n\n\\- price per linear meter/foot to run a new electrical service from the city to the expected construction area . Make sure that you allow for extra power (1200 A / 600 V or more)\n\n\\- development fees / connection fees that you will have to pay the city.\n\nOnce you have these numbers you can add another 10% as a contingency . \n\nTo avoid any construction delays it's better to have the tenant do all the work so it will be their problem if they do not finish the built out but they have to pay the rent.\n\nIf the tenant will undertake the entire work - they will price in all these expenses. Having a good broker to assist you might be something you want to consider.", "replies": [{"id": "ino2une", "text": "This is super insightful. It\u2019s just a very niche part of the local market where ground leases are extremely rare (practically no comps) and let alone a drive-thru ground lease in a city that is heavily against new drive-thrus unless an existing one is grandfathered in.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]