commercial lease

[garryscott]

We are negotiating a commercial lease with a tenant for about 10,000 sq ft.of commercial space. The tenant will also use about 5 acres of yard to store equipment and also they use the yard to display equipment for sales. I am familiar with leasing building space but I do not know how to price the yard space. Can anybody give me some suggestions.



Garry Scott

 

[Thomas Beyer]

normally you lease TO MARKET. Whatever the market will bear.



Maybe $8/ft inside and $0.1/ft outside ? Maybe $5/ft/year inside and free yard usage is expected !



Maybe $10/ft or $100,000/year ALL in.



Depends on the market. What does the competition charge ? Where is this ?



Plus triple net ?



10 year lease with 3% annual escalation clause ?



First 6 month free ?



Total lease cost over, say 10 years, should be calculated and presented to tenant. Any TI to be paid by landlord ?

 

[RedlineBrett]

I'd give them the yard for free but make them maintain it and just charge a higher rate for the interior space.