If I have the best location in town for a bank site how much do I charge for a land lease?

My property is on the major intersection of town with ADT over 25,000 on one road. It's the most desirable location in town located on a corner with a traffic light and just under 40,000 sft. I'd prefer to do a land lease to a bank or restaurant but I don' t know what to charge for the land lease.
In Leasing Property - Asked by Todd A. - Feb 6, 2012
Report Abuse
Answer this Question

Answer(s)

Boss P.
Broker/Agent
Raleigh, NC

I would suggest that the owner determine a market value for the property based on an appraisal or comparable sales analysis and then charge a market cap rate based on the value in the land.

Feb 6, 2012
Report Abuse
Steve J.
Owner/Investor
Irvine, CA

I have done several ground leases with both banks and restaurants. I'm sorry to say, but Boss' answer is not really applicable to your question. There are many factors that play into what you can ask, or what the tenant is willing to pay. They will look at things like Demo's, traffic, competition, retail spending, other banks deposits, so a lot goes into what they will pay. let me know if you have questions or need help finding an approximate value.

Feb 24, 2012
Report Abuse

Welcome to Answers

LoopNet Answers is where the commercial real estate community shares what they know to help each other out. And it's all for free.

Ask a question to get advice from brokers, investors, professionals and local experts.

Answer questions to raise your visibility as a trusted advisor and build new relationships.

Ask a Question

Post Question