Lease Pointers
New to the commercial leasing arena. I'm in the process of expanding my business and need to lease some warehouse/office space. As you all know the vast majority of these are NNN leases.
My question is - if the advertised price is $7/sqft what percentage should I add to cover the costs associated with NNN, such as for taxes, maintenance, etc. I've heard a $1.5/sqft from one person but I didn't know his qualifications on that statement so not sure how much validty it has.
Also, how reasonable is it to expect a sub-lease clause. I mean they usually want a 3 to 5 term lease and I might well have to expand (i.e. move to a bigger facility) in that time frame. Or is there another option that can be considered.
Thanks
Congratulations on your need to move to larger quarters.
$1.50 per foot would work around here (chicago) but clearly this is a different market. Most of the landlords in this situation should be able to give you pretty good numbers on what your operating expenses will be.
Sub-let provisions are quite common in this sort of situation. Which brings up another point. You might want to look around for someone to sub-let from. A buddy of mine used to do very well sub-letting the tail end of other peoples leases where they needed to move to larger quarters, occasionally they paid as much as half the on-going rent for space Paul occupied.