How are Comercial market rates set? Seeing a wide range for corporate tenant.
I have a NNN corporate tenant looking to renew for a single tenant bank property. I had a comercial agent do me a favor and run rents for the corporate tenant and the rents are all over the place. There is a $80 difference in rents psf. How would one determine what a fair market rate is?
[{"id": "hzvhqtc", "text": "you should pay the agent to figure that out or hire an appraiser if there is that large of a difference.  $80 / SF is a huge difference.  Are you comparing kiosk/instore type rents with standalone with strip or something?  There probably is an explanation and the answer is you look at the best comps and adjust as needed.  \n\nWho are you in this situation?", "replies": [], "depth": 1}, {"id": "hzxinl1", "text": "How large of an area are you looking at?   Rent will vary not just by market but also position in the market, position within a property, the size of the space, the presence or lacking a drive thru, and many other factors.   Ultimately though a bank renewal comes down to the banks deposits.  The higher the deposits the higher the landlord can push the rents on renewal (and bank deposits are public info via FDIC).", "replies": [], "depth": 1}]