what is a common NNN lease price per sq ft for a small fast food chain restaurant in Orange County Ca?

I have a client who owns a taco bell and the lease is up soon. The tenant is currently paying $4.35 NNN and I'm not sure if that is high/ low/average for this type of property. Ant help would be appreciated.
In Leasing Property - Asked by Josh C. - Mar 7, 2012
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David B.
Woonsocket, RI

Many quick serve restaurants pay rent based on a percentage of gross annual sales. The percentage can range widely based on the location and sales volume, but as an example, a restaurant that grosses $1 million per year, and pays 7% of gross sales as rent for a 1,200 SF store, would translate into a SF annual rent of $58.33/SF. I think you will find a "typical" percentage rent range of between 6 and 12% NNN, though again, many factors can effect this range. You can check Dollars and Cents, a national publication, for typical occupancy costs based on use type. Good luck!

Mar 8, 2012
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