How to Calculate the Monthly Cost of Renting Warehouse Space
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Transcript of How to Calculate the Monthly Cost of Renting Warehouse Space
How to Calculate the Monthly Cost of Renting Warehouse Space
By Nathan K. Smith
AustinTenantAdvisorswww.AustinTenantAdvisors.com
One of the main decision factors in choosing a Warehouse space is cost, so you want to make sure you get this right.
Building owners and landlords quote rates different so it can be confusing• Yearly Rate - $8 sf per year• Monthly Rate - $0.67 sf per monthYou are also responsible for operating expenses (taxes, insurance, maintenance). These are also referred to as triple nets (NNN) or Common area maintenance (CAM’s)• Yearly Rate - $4 sf• Monthly Rate - $0.33
AustinTenantAdvisorswww.AustinTenantAdvisors.com
Information you Need
AustinTenantAdvisorswww.AustinTenantAdvisors.com
Calculating your monthly cost involves 3 things1. The size (in square feet) warehouse you are leasing2. The base rental rate3. The estimated operating expenses
Example #1 – Landlord Quoting Yearly Rate
AustinTenantAdvisorswww.AustinTenantAdvisors.com
Sf of prospective Warehouse Space = 10,000 sfQuoted base rental rate = $8.00 per yearEstimated operating expenses = $4.00 per yearTotal asking lease rate = $12.00 per year
Monthly Rent = 10,000 x $12 / 12 = $10,000 per month
Example #2 – Landlord Quoting Monthly Rate
AustinTenantAdvisorswww.AustinTenantAdvisors.com
Sf of prospective Warehouse Space = 10,000 sfQuoted base rental rate = $0.67 per monthEstimated operating expenses = $0.33 per monthTotal asking lease rate = $1.00 per month
Monthly Rent = 10,000 x $1.00 = $10,000 per month
Other Costs To Consider• Electric - $1 to $2 sf per year• Janitorial – $1 to $2 sf per year if you need it.• HVAC Maintenance - $500 to $1000 per year.
Landlord will more than likely require that you hire a 3rd party hvac technician
AustinTenantAdvisorswww.AustinTenantAdvisors.com
Do You Have Any Questions?
AustinTenantAdvisorswww.AustinTenantAdvisors.com
If so you can contact me at:
www.AustinTenantAdvisors.comNathan@AustinTenantAdvisors.com512-861-0525
How to Calculate the Monthly Cost of Renting Warehouse Space
AustinTenantAdvisorswww.AustinTenantAdvisors.com