What does 2/SF/Month mean and how much would that cost.

In Buying Property - Asked by Danni D. - Oct 13, 2010
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Answer(s)

Jalal A.
Broker/Agent
Brookfield, WI

Do you have an example or the context in which this was used?

Oct 13, 2010
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Bob M.
Half Moon Bay, CA

It is very important that you understand that $2.00 per square foot per month can mean a number of things. In general it is the base rent per square foot, however, what is included or excluded in that rent number is very important information. It might be an all inclusive rent number such as Fully Serviced Gross, in which all operating expenses are included (for the comparison year) or it might be on the other end of the scale quoted as an absolute net number, meaning that every other expense in running the property is excluded from the rent and is payable by the tenant. There is also everything in between such as Industrial Gross, Modified Gross, Single, Double and Triple Net and CAMS. Learn to ask specifically what is included or excluded in any rent that is quoted to you and you will be safe. The terms I've given you are often misused even by seasoned agents, so just ask what is included or payable by tenant in addition to the rent. To learn the business properly consider How to Fast Track Your Expertise in CRE at www.tdogs.com, Bob McComb 888 894 5772 X 3

Oct 13, 2010
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Marty H.
Broker/Agent
Lenexa, KS

We need more information to give you a good answer. However, in very general terms $2/SF/Month is the same as $24/SF/Year if the rate is quoted on an annual basis as is more common in the middle of the country. In this example, you would be looking at an annual rent of $24,000 for a space of 1000 sq. ft., which equates to a monthly rent of $2000. Beyond that you might also be responsible for a wide range of operating expenses, depending on the actual structure of the lease, etc.

Oct 22, 2010
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