Posted by bamplified on February 29, 2008 at 10:41:17:
Are they receiving any extra rent from the basement? Either way, I wouldn’t include the basement square footage. Just mention it as a plus. I would base your income on the main level only for the commercial space. Also, it’s hard to tell from your wording, but you’re looking at an annual GROSS income of $37,800 ($18/S.F.) based on 2,100 S.F. Your NOI is obviously after vacancy and operating expenses.
Question about square footage - Posted by IB (NJ)
Posted by IB (NJ) on February 29, 2008 at 06:03:20:
I’m trying to determine the NOI in a commercial property I’m helping my grandparents sell. There’s 2 apartments over what used to be a restaurant. It looks like the restaurant itself has 2100 sq. ft of usuable space (kitchen, dining area, restrooms, etc.). We are told that similiar space would rent for $1.50 sq. ft per month. That brings the monthly gross income on the commercial unit to $3150/mo.
My question: can the basement be counted in the sq. footage calculation if it is available to the comm. tenant for storage?
Thanks in advance.
Re: Question about square footage - Posted by Doug
Posted by Doug on February 29, 2008 at 11:03:21:
IB - no - generally basement sq. footage is NOT considered along with this… What is typical in these situations is listing the ground floor sq footage at whatever the rate is in your market and then adding that basement storage space is also available with the space…