Commercial Rental Property

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I have recently inherited a commercial property in Orlando in a high traffic area. The property is currently rented out and the renters know that the price is way under market. They are wanting to sign a long term lease and I need to know what to charge. I have never done this before so I have no idea what the "going rate" per square foot is. Is there a website or something out there that can help me?

Anne-Orlando

Comments(8)

  • groverm29th November, 2005

    Check your local newspaper for comparibles. Go to a few of them to see if their amenities match what you have and go from there.

  • CincyRealtorNKY12th June, 2007

    Whoops! Just saw that this was from a year and a half ago....

  • Birddog112th June, 2007

    hahaha..classic mistake on here....i ssee it happen allll the time..no worries

  • seanachie22nd April, 2009

    I would discuss with the tenants that a slight increase in rent may come due to the current one being way under market BUT I would not change it if you do not need to right now since a lot of buildings are vacant and they may move and in this economy it may be hard to re-lease the property. I would shop the space available to bigger tenants to find out if any are interested or get a re agent who specializes in commercial property to consult with or turn it over to them.

    Long term leases can be signed if no other takers are availble right not BUT put in a term of convenience clause in case you need to break the lease to a bigger client, redevelopment or sale of the property. My re office has an office in Orlando if you need help and access to tenants.

    Good luck

  • CashflowVest21st April, 2005

    Wow! You guys are GOLD!
    Thanks so much for replying. Is there any liability insurance product anyone knows to shield me against future contamination if it should occur? (Assuming property is clean now)That would also protect the lender i.e. the loan too?
    By the way I am placing a call to see if phase 1 report is available from seller and am asking access to report prior to going further.
    I am very grateful for your wisdom Nancy and CommrercialKIng

  • cjmazur22nd April, 2005

    a lot of county agencies (at least in CA) have a database of leaking underground tanks, the biggest concerns w/ gas stations. It will also tell you if there are monitoring well to fee if there are new or further leaks.

  • McGaha_Consulting20th October, 2005

    The condition you are discussing is very common. Typically people follow the environmental due diligence like a mandatory procedure that must be followed; do a Phase I, then follow that by a Phase II if necessary......... That is not always necessary!

    If there are obvious concerns related to a deal, in this case a neighboring gasoline station, consider doing a partial due diligence investigation to satisfy the obvious concern first.

    In this case check out the gasoline station first. If the gasoline station is in operation, the gasoline station has records that can be obtained and reviewed to help formulate an assessment of potential impacts from that property. For example, all gasoline stations had to upgrade there tanks to meet current EPA guidelines. There is probably a study available for the gasoline station property providing soil sample results which can be useful. Gasoline stations have EPA mandated monitoring requirements. There should be documents that exist to prove the current underground tanks are not leaking (tank tightness tests, etc.). If you cannot obtain these documents or the gasoline station is out of service then find out if there is known contamination at that property. If that is not available then a Phase II assessment will undoubtedly be required. If you still want to pursue the property then request sampling with the standard Phase I work to save time in the due diligence process.

    The cost to perform a targeted due diligence investigation is a small fraction of what a full phase I can cost and you can do this investigation before presenting your interest in the property to the seller. An on-site inspection is not required to perform the targeted due diligence described. Taking the time to do a targeted due diligence investigation prior to negotiating the deal could give you some negotiating advantages.

    If you do a targeted due diligence investigation you will still require a full Phase I Environmental Assessment should you negotiate to purchase the property, but you will have a much better comfort level when entering that process.

  • DavidCastle7th May, 2009

    Why do you want to buy an apartment that is very nearer to the gas station. Do you think that the environment is quiet well and good over there.

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