I already have appropriately zoned land. Im looking to build a 8000-9000 sq ft retail building, for one tenant.
On the land there used to be a building but not anymore. for the new building i would need to give the tenant a white box, walls floors, HVAC, electrical. as for the building itself, its almost square. planning on stucco exterior. what would the ball park figure be for something like this?
about 90-130 /SF dollars for vanilla shell , search other posts done in the past regarding this
Yes depends on finishes required and engineering for the soil will drive up costs to build. Plan on the higher end of 130 to be safer. Also finishing the interior usually runs additional cost about 30 sq ft.
Make sure when you build this you have a developers mindset. What I mean is you might eventually want to sell the property off. At that time you need a lease that is structured in a way that is appealing to a buyer.
For example absolute triple net, corporate guarantee if large corporation with BBB- credit or better. If under BBB- then likely want corp and personal guarantee with high liquidity and net worth. Have annual increases of at least 2% a year for retail. The corp tenants like to do 10% bumps every five years but annual increases are more desirable instead. For instance I want the increases every year so if they go out in year 4 then I have gotten the most yield year over year. If they go out before year five when the 10% increase was supposed to happen then I had flat rent for almost five years.
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