Commercial rental rates are a measure of the amount you would be charged to rent property for business purposes, such as a store front or office space. The rate is based on the square footage of the property, the number of days it is rented, and any additional fees that may apply. Knowing your rate will help you decide if a space is right for your business. 620nlasalle guide will show you How to Calculate Your Commercial Rental Rate. Here are a few tips on calculating your commercial rental rate:
- Start by estimating how much space you need. This will help you determine the size of the office or store.
- Then, calculate the square footage of the space. This will give you an idea of how much space is available per month or year.
- Next, multiply the square footage by the monthly or yearly rate to get the total cost for that size office or store.
- Finally, divide this total cost by the number of months or years needed to lease the space. This will give you an estimate of how much money you’ll spend each month or year.
Types of Commercial Rental
Some common types of commercial properties include:
- Retail spaces: The average retail space rents for $30-$50 per square foot, with a lower rate for smaller spaces and a higher rate for larger spaces.
- Office spaces: Office space rents for $15-25 per square foot. Rates for larger spaces are typically higher than smaller spaces, and rates for downtown locations are typically higher than suburban locations.
- Industrial space: Industrial space rentals range from $4-$10 per square foot, with a higher rate for more industrial properties.
- Warehouse space: Warehouse space rents for $3-$8 per square foot. Rates generally increase as the size of the warehouse increases.
How to calculate Commercial Rental Rate?
To calculate your commercial rental rate, you will need to account for all of these factors. Here are five tips on calculating your commercial rental rate:
- Calculate square footage required. First, you will need to calculate the amount of square footage that your business needs. This information can be found on a drawing or in an advertisement. Next, multiply this amount by the current lease rate per square foot. This will give you your total cost for leasing that space.
- Calculate weekly hours required. Next, you will need to determine how many hours per week your business needs to operate. This information can be found on a drawing or in an advertisement. Multiply this number by the current lease rate per hour to get your total cost for leasing that space for those hours each week.
- Calculate month-to-month rental rate. Finally, you will need to calculate the monthly rental rate for your space. This will vary depending on the length of the lease agreement, the month, and the location of the office.
- Calculate total cost for a long-term lease. Once you have calculated the costs for leasing a specific space for a certain amount of time, you can also calculate the total cost of leasing that space over a longer period of time. This will give you an idea of how much money you will be spending over the course of the lease agreement.
- Negotiate a lower lease rate. If you are able to negotiate a lower lease rate, this will save you money in the long run.
What are some factors that will affect the commercial rental rate?
When calculating your commercial rental rate, there are a few important factors to consider. These include the size of the space, the age and condition of the space, availability, and costs associated with leasing or owning the space. Here are some other factors that can affect your rate:
- The square footage of the space
- The number of tenants in the space
- Whether the space is leased or owned
- The location of the space