REAL Lease Rates

[Greg B.]

I am looking at a local 2100 sq.ft. office building for sale. Trying to do my due diligence. Still working on my first plunge into commercial REI. I asked my realtor to run a CMA on local commercial sales and leases in the area. The lease rates that were provided vary wildly from a low of $0.20/sq.ft.to $1.60/sq.ft. How does one go about getting accurate lease rates in the area? Do those lease rates sound normal?

[Jon Klaus]

Lease comps in small buildings are very deal and location specific. What do you think likely tenant uses are? If you get a dental or medical practice you could get a premium.