Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

In a suburb 30 miles north of New York City what is the

going rate or reasonable rate...
In a suburb 30 miles north of New York City what is the going rate or reasonable rate for commercial office space annual lease increases? not including any TAX/CAM increases. I am negotiating a lease renewal with a tenant who has leased for the last ten years, during that time they paid 3% annual increases. The market has changed and is lower now. the local average is $25-$27 a sq. ft. They are currently paying $27 sq. ft. The tenant wants to renew for 5 years with zero increase ( they will pay any TAX/CAM increases) and they want a 5-year option to renew with only one 3% increase at time of 2nd renewal, meaning in a 10 year period the rent can only go up 3%. so in 5 years and for the next 5 years the sq. ft rent will be $27.81 per sq. ft. They are great tenant but this does not seem fair or practical. Can you please give your opinion and suggestions.
Show More
Show Less
Ask Your Own Finance Question
Answered in 17 hours by:
11/22/2017
bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 6,418
Experience: IRS Enrolled Agent, 20+ years of experience in tax preparation with associated finance experience.
Verified

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Based on the information you provided, this is not really an issue of finding out what the going/reasonable rate of annual lease increases for commercial office space, but rather, how much you are willing to negotiate with your tenant.

The facts are that the present rent is at the top level of what the current market dictates, you have a great tenant, and the tenant wants to renew the lease but does not want an increase/one increase in 10 years.

It does not seem practical from your business standpoint that there should not be an increase/one 3% increase in 10 years. You are in business to make money.

Perhaps a smaller percentage of increase--1% or 2%--every two years should be considered.

Please let me know your thoughts.

Thank you and best regards,

Barb

Ask Your Own Finance Question

.

bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 6,418
Experience: IRS Enrolled Agent, 20+ years of experience in tax preparation with associated finance experience.
Verified
bkb1956 and 87 other Finance Specialists are ready to help you
Ask your own question now

Thank you for the positive rating of my answer. It is very much appreciated.

Have a wonderful Thanksgiving!

Ask Your Own Finance Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a financial professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask bkb1956 Your Own Question
bkb1956
bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 6,418
6,418 Satisfied Customers
Experience: IRS Enrolled Agent, 20+ years of experience in tax preparation with associated finance experience.

bkb1956 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,609 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,222 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,933 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
Real estate professional: Please explain the advantage of a
real estate professional: Please explain the advantage of a triple net property over a multifamily as far as income potential and price appreciation. attached is an example of a NNN property. It has r… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,494 satisfied customers
Taxpayer owned a vacant commercial building. A tenant then
Taxpayer owned a vacant commercial building. A tenant then entered into an agreement for the taxpayer to tear down the existing building so that the tenant could build a restaurant on the site. Taxpay… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I have recently purchased a piece of property that consists
I have recently purchased a piece of property that consists of a single rambling building on .5 ac. The building has 3 residential apartments and 5 commercial offices/suites.I understand that commerci… read more
Rakhi Vasavada
Rakhi Vasavada
Financial and Legal Consultant
Bachelor's Degree
2,609 satisfied customers
What would be considered fair rent per square foot for a
What would be considered fair rent per square foot for a pharmacy opening in a new location in the Cotile area?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have a ten year lease at 25,000 a month with 6 months free
I have a ten year lease at 25,000 a month with 6 months free rent & 3 percent increases annually for ten years . I want to ask landlord to reduce rent to 20,000 a month with 3 percent increases years … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,172 satisfied customers
If landlord is delivering space turn key with a buildout
If landlord is delivering space turn key with a buildout cost of 600,000 on a 15 year lease with rental income of 4,257,609 how does landlord amortize that… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,172 satisfied customers
I have a Franchise Disclosure Document that I need to
I have a Franchise Disclosure Document that I need to calculate Estimated Initial Investment for the category of Lease Deposit plus First Month of Rent and then a second category of Leasehold Improvem… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I have the section 8 Program. Renting an apartment in a
I have the section 8 Program. Renting an apartment in a community. Past time the rent was $1,421. My portion was $434, the HOUSING AUTORITY'S portion was $987. Now the rent went up to $1,506 (+5.6%). … read more
Shawn P Adamo
Shawn P Adamo
CEO
Bachelor's Degree
158 satisfied customers
Shanghai city is different than the rest of China so it may
Shanghai city is different than the rest of China so it may not be affected by the price declines or bubbles are other parts of China. Shanghai city central area is also different than its surrounding… read more
Rakhi Vasavada
Rakhi Vasavada
Financial and Legal Consultant
Bachelor's Degree
2,609 satisfied customers
I have a question about tax laws in new york city/brooklyn.
I have a question about tax laws in new york city/brooklyn. I am buying a condo unit in a building that currently has a j51 abatement. I am buying this for investment - i.e. I will rent it out. I rece… read more
Rakhi Vasavada
Rakhi Vasavada
Financial and Legal Consultant
Bachelor's Degree
2,609 satisfied customers
In February 2010 I set aside a room in my house for the exclusive
In February 2010 I set aside a room in my house for the exclusive use of my part-time consulting business. In calculating the value of my home, I mistakenly used its fair market value (based on its ap… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
2,222 satisfied customers
I am looking to purchase an investment home in Brooklyn NY.
I am looking to purchase an investment home in Brooklyn NY. I'd like to purchase an apartment type dwelling. I have heard that I may have issues with rent control for rental units beyond a certain num… read more
Shawn P Adamo
Shawn P Adamo
CEO
Bachelor's Degree
158 satisfied customers
Were thinking of making an addition or a change to our home,
We're thinking of making an addition or a change to our home, in central Ohio Currently we have 4bdr 2.5 baths and a total of 2600 sq ft. Option #1 Addition of a master bath and bedroom which would ta… read more
Dave Z
Dave Z
Self-Employed
Bachelor
71 satisfied customers
Deflections, LLC, currently net leases its headquarters office
Deflections, LLC, currently net leases its headquarters office building for $70,000 per month, and this lease has two years left to run. (Under a commercial fully net lease, the tenant pays for all ma… read more
Amol Srivastava
Amol Srivastava
Master's Degree
446 satisfied customers
Corporate Finance, Ross Chapter 7 Question 9 Commercial
Corporate Finance, Ross Chapter 7 Question 9 Commercial Real Estate Inc. is considering the purchase of a $4 million building. The company will enter into a long-term lease to commercial tenants, with… read more
Manal Elkhoshkhany
Manal Elkhoshkhany
Tutor
1,933 satisfied customers
Bernie and Pam Britten are a young married couple beginning ...
Bernie and Pam Britten are a young married couple beginning careers and establishing a household. They will each make about $50,000 next year and will have accumulated about $40,000 to invest. They no… read more
Lev
Lev
Retired
Bachelor\u0027s Degree Equivalent
27,134 satisfied customers
i have a rental property with a negative income of ...
i have a rental property with a negative income of 1,000.(monthly amortization is 3,000 and the income is 2,000). the value of the house is 500,000(previously 550,000) and my loan amount is 460,000. t… read more
The Professor
The Professor
Master\u0027s Degree
342 satisfied customers
I Have rental property and was wondering if it is ...
I Have rental property and was wondering if it is possible to raise the rents because of the rise of fuel bills that will incur, the lease is set at a price but is it possible to do this increase for … read more
Susan NIntzel
Susan NIntzel
90 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x