Lease to buy option price?

[Sol Romand]

Hello BP members! I have a commercial space in a depressed neighborhood. I found a business who needs my location and is willing to pay a premium for it. However he wants a buy option in the lease. Here is my dilemma, the sales comps in the area are bad, vs the lease I would be getting from him. What other calculation can I use to get a price that it would be worth based off of rents?  

[Bill B.]

It doesn’t matter what it’s worth to a stranger. Your property is worth almost nothing to me. What matters is what it’s worth to you and what it’s worth to the neighboring business that wants it. 

As long as you don’t mind being “stuck” with the property if they say no, since they’re probably going to be your highest offer. Come up with a price that you would be happy to have and that’s the price. If you don’t want the property then make the offer so low they can’t refuse.