Commercial Real Estate for Sale or Lease
May 20th, 2012 



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Commercial or office leases, although usually a monthly payment, is often expressed in annual price per square foot.  This figure is useful for comparing costs of different commercial real estate spaces in an area and offers a more objective metric for value.

Calculate the building's square footage.

Example: assuming the building is 25 x 60 feet.  Total square footage is 1,500 square feet.
If the building lease is $2,500 per month, then the rent is $1.67 per sq foot, ($2500/1500=1.67) or $20.04 per square foot annually. (1.67 x 12).

 Sometimes landlords will offer tenants allowances to offset the interior fit-out and fixturing (ff&e).

 Net lease covers all your portion of the landlords common area costs.

 

 

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