Insurance Expense/SF for Commercial Building?
Hi Everyone,

Thanks for reading and for enlightening me in advance. I wanted to confirm with the good professionals here what the average insurance expense/SF is for an approximately 45,000 SF commercial office building?

I'm underwriting a deal right now and historical insurance expenses are only about $0.13/SF which seems unusually low. Can anybody please shed some light?

If this is elementary, my apologies, Google is not giving me what I want.

Thank you again. 

Edit: Could the low $/SF for insurance be explained through the tenant being required to carry commercial general liability insurance?

[{"id": "d9gmw13", "text": "It really depends on the area. In south Texas for example, you have to have windstorm which makes it go up dramatically. ", "replies": [], "depth": 1}, {"id": "d9gzpjx", "text": "0.15-0.20 is about normal where I am. 0.13 psf wouldn't really raise any red flags for me, unless previous years P&amp;L are higher than that.", "replies": [], "depth": 1}, {"id": "d9hd2uj", "text": "Whether you're in a special hazard area (windstorm, earthquake, terrorism, etc) has a big affect on premiums. It also varies greatly state to state since each state has different laws on insurance.  \n\nall tenants are generally required to cover liability coverage so that is definitely not affecting the premium for the property coverage the owner must carry. the owner's liability coverage expense will be a function of their creditworthiness and claims history (among other factors).  \n\nIn single tenant NNN deals, the owner's insurance will be super cheap since the T is responsible for property coverage. ", "replies": [], "depth": 1}, {"id": "d9hhdto", "text": "Just glancing at some by me (Cincinnati) they appear to be in the .15/.20 range but as others said this is a local question.  \n\nAs others said the tenant carrying liability is standard and not really a concern.  \n\nIn the future, IREM puts out property surveys by region and property type that class operating expenses and can be a good guide (though I'd rely on actual historical data or future quotes more).  You may consider buying those.", "replies": [], "depth": 1}]