Monthly vs yearly price per sq ft
I'm looking for office space and some building managers give me their price per sq ft monthly, such as $1.24 per sq ft and some give it to me yearly, such as $13.00 per sq ft. Is there some reason the industry doesn't stick with one vs another, is there some angle here, what's the deal with these to different ways to present cost? Thank you!
[{"id": "dev5xyt", "text": "As far as I know, there's no reason. The difference is usually just based on landlord preference and the particular lease form that was chosen for the space. ", "replies": [], "depth": 1}, {"id": "devc6k3", "text": "For smaller units or for a less educated tenant, it makes more sense to say $750/month rather than $1.76 sq ft.  ", "replies": [], "depth": 1}, {"id": "devd87f", "text": "I asked this question years ago and the explanation I got was.\n\nBusinesses normally build annual budgets (because a tax cycle is annual) and that is the reason commercial property is priced by sq ft/yr. \n\nNow no two business are the same and no two operators are the same and I've always liked to break it down into billing cycles (per month) my self, to me it's still. I guess that makes sense.\n", "replies": [], "depth": 1}, {"id": "dewbb97", "text": "I've done acquisitions work in all different types of markets here in the U.S.\n\nRule of thumb: Hawaii + West Coast will quote monthly, while the rest of us default to annually. It's purely a preference thing and makes no difference - other than frustrating the hell out of me and my colleagues.\n\nMost business operators like to see things broken out monthly, so any decent landlord/management company/leasing agent will just have both ready for potential tenants.", "replies": [], "depth": 1}, {"id": "dewxhi6", "text": "Monthly #s are a West coast thing", "replies": [], "depth": 1}, {"id": "dexv0ky", "text": "Monthly is a multi family thing no matter the market. I've seen brokers who do more office/retail list MF properties and they'll reference rent on an annual PSF basis. Was really odd to see it that way. ", "replies": [], "depth": 1}, {"id": "df068wa", "text": "It's a regional thing. Some markets are 100% one way or the other, which obviously avoids potential confusion.", "replies": [], "depth": 1}, {"id": "dfkunsm", "text": "Monthly is a California thing, you need to watch out for NNN, Modified Gross, Gross Net of Electric, Gross, Full Service Deals.. a deal that is $20 NNN vs $20 Gross / Full Service is a totally different cost. this is something your broker should be able to calculate for you... each building charges differently.\n", "replies": [], "depth": 1}]