I have a vacant commercial property that I want to lease. How do I determine the rent .

The property is 1.07 ac, hard corner & valued @ $500k. I want to land lease the property to a national chain & they would develop the property. How to place a value on the rent?
In Leasing Property - Asked by Steve C. - Nov 1, 2009
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Answer(s)

Michael h.
Owner/Investor
Fredericksburg, VA

By square foot of office and warehouse.

Nov 1, 2009
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Gerald B.
Broker/Agent
Mckinney, TX

we can run a CMA to determine your rates

Nov 2, 2009
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Gregory G.
Broker/Agent
San Francisco, CA

Tough one. First find out what national tenants would be interested in the location. Then pull some comps for that chain.
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
(415)225-9894
gregory.garver@gmail.com

Nov 6, 2009
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Chris R.
Broker/Agent
Denton, TX

IF the value of the property is felt to be $500K - you might consider 10% of the value per year as rent - ABSOLUTE NNN - in that the tenant pays you the 10% of the value - typically monthly - and then is fully responsible for any and all improvements, taxes, insurance, maintenance. Such a deal would typically have a lease term of 10 or more years with options to extend the lease up to 30 -40 - 50 years in order for the national chain to invest the money needed to support their store. You might also get a % of the sales over a base worked in to the deal.

Dec 1, 2009
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