How do you rent rental stores? Is it per Sq. footage of the space inside the store?

In Buying Property - Asked by Jolly I. - Sep 8, 2009
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Answer(s)

Don G.
Appraiser
Pepperell, MA

There are two basic methods. First is net rentable area (NRA). Here you measure the interior square footage from wall to wall. You do not include common area. Next is Gross Building Area (GBA). This is a measure of the exterior wall measures and includes common area. Theoretically it should not matter. Total rent for the retail building should be the same regardless of method used. A single stand alone building with 4,000 square feet (GBA) rents for $10.00 per square foot ($40,000 annually). The same space in a retail strip based on GBA is still $10.00. If the NRA is 3,500 square feet, then the rent would be $11.43 ($40,000 / 3,500 NRA). The key in making comparisons is to compare apples to apples. That is if most rents in the area are offered on a NRA basis, then be sure that the one are renting is also based on NRA.

Sep 12, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

Yes GBA is measured from one exterior wall to the next exterior wall.
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Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)225-9894
gregory.garver@gmail.com

Oct 23, 2009
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