Posted by JT-IN on November 06, 2009 at 22:29:51:
In Reply to: Dividing a commercial space posted by Bill on November 06, 2009 at 13:44:53:
I would attempt to offer incentives... whatever you need to do to get it rented, (nothing more, but nothing less), and I would write the lease at mkt rents. Then offer incentives off of that figure... and hopefully those incentives would phase out over time. Of course you can only do what you can do...
So to summarize, quote net rents to potential tenants but write the lease in gross terms less incentives. The reason is two-fold... one being what impact a lower gross rent number might have on other tenants... (that theoretically could be paying more now); and two what impact a lower gross number has on the overall value of the property. Short term incentices aren't going to impact the value of the property near as much as a lower number of gross rents.