Question for everyone out there in commercial real estate. My father owns a automotive repair facility in CT and wants to rent out his upstairs to a renter he already has in the back of his building. The renter is currently paying 2200 for 6500 square feet. The upstairs is an additional 14,000 square feet.
Question 1. He was told by his accountant 2nd floor space is cheaper then first floor space so the 4 and change he gets downstairs he would not be able to get. He seem to think he will only get 2.50 square foot.
Question 2. Space is space. If the man wants to utilize over 20000 square feet per space shouldnt he be charged for that space at the current rate.
Question 3. This space has not been utilized in 15 years. Are we stuck behind the 8 ball because there has been no income for the space for such a long time.
This is very late but your accountant is normally correct. Most often, second floor space is less expensive simply because it is less convenient. The fact that you haven't leased it in 15 years on matters if it has been neglected, or if you allow that to effect your negotiations. Good luck renting it.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing