Huge variations in rent rolls
Is this huge variation in rent rolls common? This is West Main Marketplace in Turlock, CA

* Stanislaus County: $19.80/SF for 35k SF
* Dollar Tree:           $10.45/SF for 10k SF
* Grocery Outlet:       $5.18/SF for 23k SF
* Adrians' Beauty College: $13.45/SF for 12k SF
* MetroPCS                      $23.48/SF for 1k SF
[{"id": "elwk4sh", "text": "I'd check to see if the Grocery Outlet is paying a % of sales that's not factored into that rate...", "replies": [{"id": "em1bxd8", "text": "Ive heard % sales are common for grocery stores. Anyone know % average of revenue? or is of NOI", "replies": [], "depth": 2}], "depth": 1}, {"id": "elwmt8p", "text": "Depends when the leases were signed. The tenants with the lower rent might have signed 7 or 8 years ago at the start of the recession when the LL was having a tough time with leasing velocity.", "replies": [], "depth": 1}, {"id": "elwnmbb", "text": "It can be common, the spaces they are occupy are not the same. The grocery store occupying 10K SF space and Metro PCS occupying 1K SF space is not an apples to apples comparison. The smaller space will undoubtedly have a higher rent/SF number. Plus, for large spaces like grocery stores, the rent/sales ratio is important for the tenant more than the rent/SF number. For the grocery store, if rent/sales is 1-3%, then the tenant has a higher chance of renewal. \n\nAnd for this center in particular, looks like most leasing was done in 2014/2015. The county moved in 2018 (or either renewed) and their rent makes sense because the submarket rent per Costar is $18/SF. Took a look at this property on Costar, from my perspective if you are buying the property, the main issues I will pay close attention to is the concentrated roll, tenant sales, the TI/LC's given for newer tenants.", "replies": [{"id": "elwtzwy", "text": "I\u2019d also check to see if the county lease is paying CAM separate of the rent. Most government leases I\u2019ve worked with are gross leases. That would explain why the large Grocery is so low and the larger county space is high comparatively.", "replies": [{"id": "elwuu01", "text": "good point, highly likely grocery has a NNN lease.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "elwqgot", "text": "Rent variations are often different. Even in office space. \n\nFor example: I manage and lease this one office park where we have spaces from 1,000-4,000. If a tenant only wants 600-700 SF we can make that happen but instead of paying $20-$21 PSF they are now paying $22-$24 PSF.", "replies": [], "depth": 1}, {"id": "em0jikc", "text": "We have most of these comps in CompStak - www.compstak.com, and the numbers seem to check out. Although we have two comps for the Grocery Outlet (the lowest one on the list).  One of the comps is for 10,400 SF and is $5.16 per SF per year (although I believe rents are typically quoted per month in this market).  This comp is also showing $37 in TI. The other comp is 22,000 SF and is listed at $16.20 per SF per year. However, this comp is listed as Modified Gross, and the other is NNN.\n\nThe comments regarding NNN vs gross/modified gross leases and percentage leases are good ones.  A government agency would obviously not be on a percentage lease, but the others certainly could, and could have different terms depending on the tenant.\n\n&amp;#x200B;\n\nHere are the comps, which you can see if you have a CompStak account:\n\nStanislaus County - [https://enterprise.compstak.com/comps/leases/765360](https://enterprise.compstak.com/comps/leases/765360)\n\nGrocery Outlet 1 - [https://enterprise.compstak.com/comps/leases/562093](https://enterprise.compstak.com/comps/leases/562093)\n\nGrocery Outlet 2 - [https://enterprise.compstak.com/comps/leases/273646](https://enterprise.compstak.com/comps/leases/273646)\n\nDollar Tree - [https://enterprise.compstak.com/comps/leases/355394](https://enterprise.compstak.com/comps/leases/355394)", "replies": [{"id": "em3k6os", "text": "thanks, will check out compstak", "replies": [], "depth": 2}], "depth": 1}]