Sep
08
How do you figure out how much to lease your commercial building?
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I own a large commercial building and want to look at leasing it rather than continue with my own business in it. It has just over 4000 sq. feet. How do I find out what the going rate is for leasing in my area? And is it based on sq. footage??
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4 Comments
September 9th, 2009 at 4:21 am
look up a search engine
September 12th, 2009 at 3:32 am
It is based on square feet. Usually Triple Net
Which means tennants pay the taxes, the maintenance,and utilities… So much a sq ft Triple net.
You can look up other properties with same zoning to find out their lease rate, Or join landlard association.
September 14th, 2009 at 4:22 pm
I would suggest using local tools or companies in the region of your building and determine a medium price. And yes the rental on commercial space is a sq. ft. charge. I would suggest looking at the links below to get an idea.
Things to consider are carpeting, amenities, taxes, and repairs as well as the sq. ft.
September 16th, 2009 at 8:09 am
It would depend on the location (is it downtown vs. close to the edge of town), the squarefootage, the quality of the building (A-level vs. C-level building), the use of the building (permits), the type of lease (such as a triple-net lease), other competing buildings in your area, and who your tenant is.
Typically, they would do a market rent comparison with similar buildings in your neighborhood based on squarefootage. Say there are 2 other commercial buildings in your neighborhood that have an average rent of $30/sq.ft., but your building has a better location, you would get an adjustment upward. And vise versa.
I recommend:
1) Hire a commercial leasing agent who will do the leg work for you. I know that it’s costly, but it may be well worth your time since you haven’t leased it out before. They will find out what the market rate is by comparing with other buildings in the area. They will also handle all of the legal documents and inspections. You can learn from them and know how to lease it out the next time.
2) You can also contact leasing agents in the area about leasing a 4,000 sq.ft. commercial building in your area and see what their rates are.
3) I’ve never used this site, but it may give you some good ideas about the market rents in your neighborhood. You can also search for other sites like it.
Good luck!