Anyone know if there is a rule of thumb for determining how much ground rent should be on a retail property? I'm looking at an empty retail lot that the owner wants to keep with a ground lease on it but is willing to sell any retail improvements. I'm trying to get an idea of what the ground rent should be given that I know the approximate construction costs, retail rent, and operating costs. I know what I can afford to pay based on my DSCR, but curious if there's a guiding principle.
Is there a "% of revenue" rule of thumb, or, like, I don't know, a "% of NOI" rule of thumb?