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0:20 40:29 Suggested clip Commercial Real Estate Comparative Lease Analysis Video Tutorial YouTubeStart of suggested client of suggested clip Commercial Real Estate Comparative Lease Analysis Video Tutorial
2:17 5:56 Suggested clip How to Analyze Commercial Real Estate Deals in 4 Easy Steps YouTubeStart of suggested client of suggested clip How to Analyze Commercial Real Estate Deals in 4 Easy Steps
Conduct Location Analysis. First things first. Calculate Cash Flow. After you've analyzed the location and made sure it is profitable, it is time to move on to the investment property analysis. Analyze the Capitalization Rate. Analyze the Cash on Cash Return. Run a CMA (Comparative Market Analysis)
Typically, with commercial properties, lease rates are based on the annual cost, per square foot, of the leased space. Thus, to determine the monthly rent for a property, one would need to multiply the quoted rent per square foot by the number of square feet being leased.
You will typically see this quoted as an annual rate or a monthly rate. Example with a yearly price per square foot: A 3,000 sf office space has a yearly asking rental rate of $25 per square foot. 3,000 x $25.00 = $75,000 per year for rent. Divide by 12 months to get a monthly rental amount of $6,250.
The average commercial/retail lease rate rose to $26.75 in Q3 2019 from $25.71 in Q3 2018. The industrial lease rate was down to $7.43 from $7.80, and the office lease rate declined from $14.89 in Q3 2018 to $13.07 in Q3 2019.
Evaluate your business needs. Always involve a lawyer. Understand your costs. Understand your lease options. Check market rents. Research the property. Seek tenant inducements.
Evaluate the Length of the Lease. Research Comparable Rents. Look for Hidden Costs. Ask for Favorable Clauses. Check the Termination Clause Closely.

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