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Commercial Real Estate Investing

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Alex Rand
  • Austin, TX
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Are they asking for a reasonable rent reduction?

Alex Rand
  • Austin, TX
Posted Jan 24 2020, 12:07

I own a NNN lease that I purchased 15 years ago. I have some residential real estate experience but nothing in commercials. The property is in a different state and I'm not familiar with the market in that area.

For the first 10 years, the rent was $17.35 a sqr ft

For the last 5 years, the rent was $19.28.

The tenant is coming to the end of their lease and they are requesting a substantial reduction: $17.20 for another 10 years.

They sent me a “Lease Comps Summary” report to support the notion that the rent should be lower.

I’ve called some local brokers to try and find out what the market rate should be and brokers tell me, “high teen”. That’s just too vague.

How can I determine what the market rate should be for this property?

Is there a service out there that can help me?

Any advice would be appreciated. Thanks

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