Trying to price a shop space rental
 I was recently approached by a master woodworker who was interested in renting out my shop. I am interested in renting it out at this time but I have no knowledge of how to price it. He stated that it was basically the ideal setup for him. It has a full overhead door and poured concrete floor. The base dimensions (on the inside) are 20x43 the height of the door is also 20 feet (built to house boats to work on). There are built in work benches numerous outlets (most are GF circuit interrupters) and several rolling work tables. It would also Include a loft area of 20x23 above different shop area. I have no experience renting or pricing this stuff. It on a main road close to Brunswick, Maine and 10 min from the nearest hardware store. There is no plumbing. (But portapottys were mentioned) I would appreciate any help with this. It is a very nice shop.
[{"id": "fy7blwo", "text": "This sounds like a single tenant building.  Ideally you could look at doing a triple net lease situation where they are responsible for the taxes, insurance, maintenance and you collect rent.  That may not be that easy with a small tenant however.  You need to try to find other similar types of buildings in your area.  Check available buildings for lease on [loopnet.com](https://loopnet.com) to get a basic idea.", "replies": [{"id": "fy8q06t", "text": "The problem is that there are none. I checked that site as well as numerous others. I can't find anything even remotely comparable in my area.", "replies": [{"id": "fy92y4m", "text": "Find an alternative business in the same type of building as close to you as possible.  You will probably be under that amount a bit on a cost/sq ft basis.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fy7ne84", "text": "I assume you do some measure of this carpentry work right now?  How much would you pay for this set up? Are you currently using this shop ergo what is it producing for you now? Look around and see what it would cost to rent something similar even if it isn't exactly the same. Alternatively, take your expenses and calculate a return acceptable to you on top of it.  The worst they can do is say no and you're in no worse position than you were before.  More likely they counter, ask for their reasoning and see if you accept it or continue to negotiate.  \n\nWilling buyers and willing sellers make the world go around.", "replies": [{"id": "fy8q9iy", "text": "I do some woodworking but it is on a hobby level. I do not make money with it, so I don't really know how to price it from that aspect. The closest thing I have been able to find is office space which ranges from $1-$6 a sqft which doesn't help nail it down.", "replies": [{"id": "fy98m3l", "text": "So when you say you were approached by someone who wants to \"rent out your shop\" it isn't a currently operating commercial carpentry establishment?  Is this a stand alone building or at your residence?  You said something about the plumbing... is this space zoned for commercial operations and will traffic be an issue?", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fy7sp66", "text": "I would see what other light industrial goes for, price it a little below that and make them be responsible for maintenance.", "replies": [], "depth": 1}, {"id": "fy807xk", "text": "(1) Do you own the building\n(2) is it residential\n(3) get a lawyer or commercial broker or both (probably realtor to start, but you probably need both\n(4) lawyers and the appropriate insurance will be your friend here.", "replies": [{"id": "fy8qibq", "text": "Building is owned yes, it is not residential (shop is a building by itself), I have been looking into that but would rather not need that expense. How would a lawyer help other than drafting the lease? Yes if it is rented I would absolutely make sure to get the appropriate insurance. I am considering making it an LLC just to be safe.", "replies": [{"id": "fyaa7ul", "text": "Is the shop on your residential property though?", "replies": [{"id": "fyaappt", "text": "Excuse my French but the lawyer is going to draft the lease so you don't get fucked by improper ventilation and someone suing for lung cancer, or if someone cuts off their hand with the table saw. That will ruin you if you don't have the right clauses in your lease or insurance.  If the building is on your property then you might lose your house etc etc.\n\nGet a lawyer", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fy8aa89", "text": "The biggest issue with wood working shops is the dust, my God the dust. A former property manager used to work for a competitor of mine. The first day working for the competition, he got called out to a burning building. The tenant that started the fire? cabinet shop. \n\nInsurers hate them because 90% are really messy and fire hazards. If I ever got an inquiry from one, first thing I would do is drive to their current location and see how they ran their shop. An inch of saw dust everywhere? Bags of saw dust everywhere? No air filtration/dust collection system? Hard pass.", "replies": [{"id": "fy8qomw", "text": "I don't know exactly how he runs his own workstations but I will be finding out on Saturday. I personally make sure to vacuum everything up after I am done with a project. But you are right, I should install a proper ventilation system.", "replies": [], "depth": 2}], "depth": 1}]