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How much should it cost per month to lease a building? Answered

The building is the size of a small, old used car dealership (I will update the question when I get the exact squarefootage) and has been unoccupied for over a year.  How much should it approximately cost to lease the building so that I know that they aren't overquoting me?



9 years ago

What state?
What town?
What part of town?
How much parking?
What kind of street?
What kind of construction.
How old is the building?
Do you pay utilities or do they?
Do you pay for repair of a/c etc. goes out?
What does other buildings in area go for?
How long is the lease?
What kind of business is this going to be?
Are they going to clean, paint etc. before you move in or are you going to do that?
Are there any hidden costs like parking lot maintainence, cleaning grass mowing that you don't know about.

In the town where I have my business (drafting shop/designers office), lease space starts at about $14 per. sq. ft. per year for the least desirable space like auto parts strore metal building to about $35 per sq. ft. per year for something like a new dr's. office with brick and glass.

I believe in Tokyo there is office space available for about $1500 per sq. ft. per year.

What you should really do is shop around in your area.  Find out what is charged for what's available and base your decision on local info.


Answer 9 years ago

Sorry I didn't post all that info:

Phoenix, Arizona
Bell Road -- this used to be THE street in Phoenix for car buying, but since the city has expanded so much, most of the car dealers are changing locations.

The real estate (as I just learned) is owned by the Turf Paradise -- the local horse/dog race track.

Parking is abundant as it was an old car dealership. The parking is not only limited to the actual car lot, but is connected to Turf Paradise's general parking.

The street used to be a main street, but not so much anymore.

The construction is simplistic and was clearly designed as a car dealer's building. A huge lobby, bathrooms and offices in the back.

I am unsure as to the age of the building.

I was hoping to only lease the building for a short time (about 3-4 months) to put on a few large performances, but seeing as the building has not been occupied for over a year, I was hoping that they wouldn't mind such a short lease.

The plot of land is all asphalt and the building. The asphalt is in good condition, as well as the building.


Answer 9 years ago

What I was trying to do was demonstrate to you that you question is local.  And is based on all of the variables that only you can answer.

Since you are only wanting the building for a short time the rent may be higher than normal.  The building is going to be off the market for a while and then back again.  There are start up costs to the owner that are the same whether it's rented for a month or 10 years.  Insurance will probably have to be paid for a year.

You are the only one that can tell if the cost is too high.  If so then you can offer them less and see if they take it.

If you can't get them to come down and you can't afford to go up then the project is not right for this spot.

Good luck either way.


Answer 9 years ago

The web is global. Even those of us who are real estate agents (I presume there are some) can't know the market in all areas, and this is very much a local-market question.

Shop around. Ask other store managers if they're renting and what they're paying if so. Ask a local agent. Check your local newspapers to see what's being advertised.

In other words, exactly the same process as if you were looking for an apartment. The prices will be different, and the availability is different, but the problem and solution are the same.


9 years ago

see if you can find similar deals on Craigslist