Pricing my commercial rent

[Clement Ndifor]

what factors should I consider when pricing my commercial property?

I am doing my due diligence on a commercial building I want to buy for owner occupied usage.

I'm looking to buy for $830,000 at $286/SF

it's essentially a 50-50 split with about 300SF being public space hallways and foyer.

I am looking for advice on how to price this property for the other unit I want to rent. 

Obviously I want to collect as much rent I can to reduce the balance left to me on the mortgage, but I don't want to be greedy, I want a perspective of what I could consider fair market price for space before I factor in my market. 

[Henry Clark]

Would approach in two fashions:

1. Work it backwards to what you want. 1/2 or $415,000 P/I monthly amount; assume 50/50 on the commons. Also, on the exterior. Add in a Capex budget. Are you going NNN, then no need to discuss. If you're not NNN, then add in those costs. What is your monthly NOI cash flow figures after income tax? Add the return you want to make. 10%, 15%, etc. What is that monthly number? Thats your rent rate.

2.  Do comparables on similar products and usages.  That is your competitive rate.

3.  Also decide on the type of customer, their industry, length of contract, their financial and personal strength.  This would cause me to move the rent higher or lower.