How Do You Calculate A Ground Lease Rental Amount In Florida
Hey Guys, 

How do you calculate a ground lease rental amount? I don't have a NOI or idea of what's going to go there yet. I'm trying to figure out a general cost of construction right now in Florida for commercial development. Any guidance would be appreciated.
[{"id": "g87qmgb", "text": "You ask how much the ground lease payment is.", "replies": [{"id": "g88cvo3", "text": "I will actually be representing the owner and leasing the land for them. I know the amount they're asking for but they've been asking for that amount for over a year when I first met them. I've never had to calculate the value of a ground lease before.", "replies": [], "depth": 2}], "depth": 1}, {"id": "g87taus", "text": "7-10% of the value of the land per year NNN is a good estimate.  More if the land is cheap but if it costs 150-400k an acre it probably makes sense to just buy if your making a large investment.", "replies": [{"id": "g88cv43", "text": "I will actually be representing the owner and leasing the land for them. I know the amount they're asking for but they've been asking for that amount for over a year when I first met them. I've never had to calculate the value of a ground lease before.", "replies": [], "depth": 2}], "depth": 1}, {"id": "g88fv4f", "text": "What type of business does he expect to put there? That makes all the difference", "replies": [{"id": "g8cburq", "text": "We've considered gas stations and hotels. Looking at demographics to see if it would support something like a Starbucks and panera.", "replies": [], "depth": 2}], "depth": 1}, {"id": "g88stdj", "text": "Hire an appraiser and give them a couple of scenarios based on the owner's desired plans.", "replies": [], "depth": 1}]