Commercial Building Master Lease Discount?

[Michael Moikeha]

Hello,

I have a Master Lease that I am negotiating, and the owner is starting his negotiations at the full price of what he is offering all the space for individual. 

So for example:

5,000 sqft restaurant/retail listed for $12 a sqft/y

5,000 sqft warehouse/storage listed for $6 sqft/y

10,000 sqft lot listed for $2.4 sqft/y

Plus NNN

So if he leases it all separately, the income is $9,500 + NNN a month fully occupied. The place currently is less than 50% occupied in the retail space, and none of the rest of the space is currently leased out. He wants me to lease it for $9,500 a month.

What would a good counter be? Obviously I am taking the risk of being able to get it all rented, but even if I fully rent it at the "going rate", I don't make anything. 

I have two questions. In a typical Master Lease, I imagine the property is a bit more stable, so can justify a smaller discount off of the going rate. But what is that? 5% - 10%? With his vacancies so high does that justify a lower rate, or would this be a time to offer an escalating lease based on performance?

This is my first go at this, but negotiations are looking good. He owns the property out right, is open to carrying a contract, is willing to negotiate cash back at closing held in escrow to put into the property. 

Any feedback is appreciated!