i have been cleaning up property which was a oil company, and now i need to lease it out for income comming in. how or where do i go to find this out.
2006-08-17 06:43:13 · 1 answers · asked by Anonymous in Local Businesses ➔ United States ➔ Other - US Local Businesses
It is pretty much the same as a residential property. You have to determine what the market is commanding. You can research rents on www.loopnet.com and get an idea.
In commercial properties there are usually three and sometimes four classes of space: A, B, C or D. "A" properties include the Donald Trump kinds of places, luxurious, and over the top but in some markets can just be the top of the line facilities. They obviously are going to command the top prices. B and C properties follow in behind. Most affordable office spaces are going to be in the B to B- area.
You next need to determine if you are going to offer the space "triple net" sometimes abbreviated "nnn" That means the tenent is responsible for all of the maintenance, cleanup, repairs, etc. associated with their occuppancy. This is generally the type of lease when the building is stand alone. Multi tenant spaces aren't usually nnn since there are generally common areas that need to be dealt with.
FYI, commercial leases are expressed in terms of $ per square foot factored over a years time. In other words if the place leases for $10 per square foot and the building is 2000 sq. feet then the annual lease is 2000 x $10 = $20,000/12 months = $1666 a month. If it is a triple net space then you will see it as $10 sq. ft. nnn
2006-08-17 10:52:29 · answer #1 · answered by Sam B 4 · 0⤊ 0⤋