how many months of deposit is usually requested for a commercial property ?

how would you incorporate rental increases for a 10 to 15 year contract
In Leasing Property - Asked by yvonne g. - Dec 30, 2012
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Answer(s)

Steven I.
Broker/Agent
New Haven, CT

It really depends on a case by case basis. Landlord's typically make this determination by 1) how much money they need to invest in your build out and 2) the tenant's creditworthiness. If minimal work is being done by the landlord and the tenant is an average credit risk, 1 to 2 months is a typical amount.
For larger financially strong companies, its typical for no security deposit to be charged.

Dec 30, 2012
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Steven I.
Broker/Agent
New Haven, CT

It really depends on a case by case basis. Landlord's typically make this determination by 1) how much money they need to invest in your build out and 2) the tenant's creditworthiness. If minimal work is being done by the landlord and the tenant is an average credit risk, 1 to 2 months is a typical amount.
For larger financially strong companies, its typical for no security deposit to be charged.
With regard to rental increases, its really market driven. In strong rental markets, rents could be expected to increase well above inflation over the term. In softer markets, you could see rents flatter or closer to inflation adjusted increases.

Dec 30, 2012
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Dalip S R.
Broker/Agent
Arlington, TX

It all depends on the market and availability of the space. It also depends on if the landlord has to do any repairs or build out. Usually big companies or large franchises might pay less then an individuals. Tenant's creditworthiness and business experience is also conciderd when determining the deposit. If the risk is minimum it is usually around one or two month of the rent.

Dec 31, 2012
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Victor T.
Lender/Mortgage Broker
Farmington Hills, MI

10 % depending on the property!

Jan 4, 2013
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Chris S.
Broker/Agent
Coeur D'alene, ID

We normally ask for first month's rent plus security deposit equating to one month's rent.
Rental escalations are negotiable and depend on the specifics of the tenant, property, market, etc. As landlord rep, I would suggest a cummaltive CPI every 5.

Feb 18, 2013
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