quote:
It is amazing what the wide variance in commercial leases/SF is at the same location. I have seen rent rolls at some office parks that vary from less than $!/FT to more than $4/FT and not based on lease duration or total SF and some of the older leases are the most expensive.
This tells me that commercial lease rates are very competitive and very negotiable.
A few lease cost factors that might not be directly reflected on rent rolls include:
* Tenant improvement allowance or build-out costs of the space
* Amenities of the space (general office vs. medical with plumbing in every room)
* Signage or parking rights
* Higher than normal utility costs, if landlord pays the utility bill
* Whether janitorial services are provided to the space
Those may not account for 4X rent, but would explain part of it, with market conditions at lease signing and the landlord/tenant's negotiation skills making up the rest.