These rules definitely apply to the Okanagan Shuswap Commercial Real Estate market but they are also fairly accepted in most areas. I receive questions like this on a regular basis. Lease rates are set on a rate per foot, per year. A common mistake that sometimes even Realtors make is that the rates are set per month; not so. For instance if we look at a 4000 square foot retail space and the rate is set at $12.50 what does that mean? It means that you would multiply the 4000 sq. ft. by the $12.50 to find out how much rent the tenant would pay in a year, in this case it is $50,000. In order to find out the monthly lease payment we would divide by 12 which is equal to $4,166,67 per month.
How are the Leasing rates set for Commercial Real Estate in the Okanagan Valley?
- January 19, 2015
- January 2015 (2)