Office and Retail Rental Rates
Rental rates for office and retail space are typically quoted in terms of money per floor-area–time, usually money per floor-area–year. For example, the rate for a particular property may be $290 per square-meter–year ($290/m2·a) (or $29/ft2·a), and rates in the area could range $200/m2·a–$500/m2·a.
In many countries, rent is typically paid monthly even if usually discussed in terms of years.
Example: A particular 200 m2 space is priced at $150/m2·a: (200 m2) × ($150/m2·a) / (12 mo/a) = $2500/month
In a gross lease, the rate quoted is an all-inclusive rate. One pays a set amount of rent per time and the landlord is responsible for all other expenses such as costs of utilities, taxes, insurance, maintenance, and repairs.
The triple net lease is one in which the tenant is liable for a share of various expenses such as property taxes, insurance, maintenance, utilities, climate control, repairs, janitorial services and landscaping.
Office rents in the United States are still recovering from the high vacancy rates that occurred in the wake of the 2008 recession.
Read more about this topic: Office Buildings
Famous quotes containing the words office, retail and/or rates:
“A tremendous number of people in America work very hard at something that bores them. Even a rich man thinks he has to go down to the office every day. Not because he likes it but because he can’t think of anything else to do.”
—W.H. (Wystan Hugh)
“A free-enterprise economy depends only on markets, and according to the most advanced mathematical macroeconomic theory, markets depend only on moods: specifically, the mood of the men in the pinstripes, also known as the Boys on the Street. When the Boys are in a good mood, the market thrives; when they get scared or sullen, it is time for each one of us to look into the retail apple business.”
—Barbara Ehrenreich (b. 1941)
“One of the most important findings to come out of our research is that being where you want to be is good for you. We found a very strong correlation between preferring the role you are in and well-being. The homemaker who is at home because she likes that “job,” because it meets her own desires and needs, tends to feel good about her life. The woman at work who wants to be there also rates high in well-being.”
—Grace Baruch (20th century)