Simple question about rates - Posted by Anon

Posted by ray@lcorn on November 24, 2002 at 17:52:52:

The math is quicker for monthly expense that way… good point.

I always figured $1.50 per foot sounds better than $18 per foot to a tenant… but owners are the ones that talk that language day in and day out, and $18 sounds way better to them! :wink:

Simple question about rates - Posted by Anon

Posted by Anon on November 22, 2002 at 13:46:12:

I’ve been reading about commercial real estate rates, which are always quoted in $/s.f. My question: $/s.f. per what? I’m guessing either per month or per year, but nobody ever says (which I find really annoying).

Re: Simple question about rates - Posted by ray@lcorn

Posted by ray@lcorn on November 22, 2002 at 15:56:54:

Anon,

Commercial rental rates are generally quoted per square foot per year. There are some places and people that will quote it as per sq. ft. per month, but they are in a very small minority.

ray

Re: Simple question about rates - Posted by anon

Posted by anon on November 22, 2002 at 16:00:31:

Thanks. I assume that means that anybody quoting something other than per year should say explicitly $/sf per month.

Re: Simple question about rates - Posted by ray@lcorn

Posted by ray@lcorn on November 22, 2002 at 16:06:43:

They should, but unfortunmately the ones that quote it per month usually don’t know that there is another understanding anyway. Usually you can guess though… when I hear a rate quoted between one and two dollars a foot I can guess that it is being quoted per month, and I know to ask.

Re: Simple question about rates - Posted by Nate(DC)

Posted by Nate(DC) on November 22, 2002 at 17:44:49:

I think that it’s more common on the West Coast to quote per month, whereas in the rest of the country it’s generally quoted per year, but that is just hearsay.

NT

Re: Simple question about rates - Posted by ray@lcorn

Posted by ray@lcorn on November 22, 2002 at 18:08:32:

I’ve noticed the same thing. I wonder if it is due to the higher rates in general (though not recently) in the hot areas out west?

Re: Simple question about rates - Posted by Nate(DC)

Posted by Nate(DC) on November 24, 2002 at 15:48:10:

Maybe. Or maybe it’s because people move their businesses around more frequently out west and aren’t in the space for a whole year :slight_smile:

Actually, I think it does make some sense from the perspective of a small-business tenant to look at it per month; after all, a lot of mom and pop type tenants probably do their own budget on a monthly basis.

NT