Hey guys, got a quick question about commercial real estate leases
So i'm doing an assignment at the moment, and one of the questions mentions that the lease is $25 psf NNN. The total square foot is 5000. Is that $25 psf rate per month, or is it per year?
[{"id": "dnaqznd", "text": "Likely per year unless it's some high end retail in NY", "replies": [{"id": "dnasksc", "text": "Thought so, thank you!", "replies": [], "depth": 2}], "depth": 1}, {"id": "dnarar8", "text": "per year", "replies": [{"id": "dnasl1b", "text": "Cheers!", "replies": [], "depth": 2}], "depth": 1}, {"id": "dnarduy", "text": "It\u2019s likely per year, $25 X 5000 = $10,416 per month. Don\u2019t forget to add CAM and electric and janitorial and sales tax (depending on your state)", "replies": [{"id": "dnaskle", "text": "Thank you, that clears it up for me", "replies": [], "depth": 2}, {"id": "dnbc080", "text": "What about tenant improvement allowance? There's just one figure here and it's $52. Is that a one time expense (for landlord) per square foot at the signing of the lease?", "replies": [{"id": "dnbc5l3", "text": "Send me a pm with your number and I\u2019ll go through it with you.", "replies": [], "depth": 3}, {"id": "dnbnj36", "text": "Yes", "replies": [], "depth": 3}], "depth": 2}, {"id": "dncsbu4", "text": "are you just saying for the total tenants cost account for sales tax or is there some states where landlord pays sales tax and bills back to tenant as part of the lease structure? ", "replies": [], "depth": 2}], "depth": 1}, {"id": "dnkcx96", "text": "Yeah per year. Always per Year unless theyre being obscure for some reason.", "replies": [], "depth": 1}]