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Danny reds

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I would like some feedback from my friends on the forum.

My Business is doing good and was able to move the business from out of my house to a office space that i'm now growing out of.

The new office space i'm looking at is just a little over a fair price i think.

What is usually negotiable for a office lease???
 

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Vigilante

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I would like some feedback from my friends on the forum.

My Business is doing good and was able to move the business from out of my house to a office space that i'm now growing out of.

The new office space i'm looking at is just a little over a fair price i think.

What is usually negotiable for a office lease???
@LightHouse
 

LightHouse

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I would like some feedback from my friends on the forum.

My Business is doing good and was able to move the business from out of my house to a office space that i'm now growing out of.

The new office space i'm looking at is just a little over a fair price i think.

What is usually negotiable for a office lease???
What type of lease is it? Full service, NNN (triple net), modified gross?

Also What type of space is it? warehouse, class A/B.

If you could give some more detail about the deal, the rent rate and cam costs, and the area you are in, I can narrow in on some things for you to focus on. Some lease's have more room for things that others. In the end, you pay for everything at a commercial property one way or another so you aren't getting a "deal" so to say like you would on a car.

thanks @Vigilante for tagging me
 
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Danny reds

Danny reds

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Denver, CO
What type of lease is it? Full service, NNN (triple net), modified gross?

Also What type of space is it? warehouse, class A/B.

If you could give some more detail about the deal, the rent rate and cam costs, and the area you are in, I can narrow in on some things for you to focus on. Some lease's have more room for things that others. In the end, you pay for everything at a commercial property one way or another so you aren't getting a "deal" so to say like you would on a car.

thanks @Vigilante for tagging me
Thank you so much for the reply. You guys are great!!!!

The office is located 7600 Wadsworth Blvd suite 200B, Arvada CO 80002 its a class b space. They are replacing carpet and paint in the unit. Space is 1,200 sf with 2 months free rent 3-14 $19.00 NNN, $19.50 NNN and $20.000 NNN the CAM is $12.64 per sf.

Please let me know your thoughts.
 

AgainstAllOdds

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Thank you so much for the reply. You guys are great!!!!

The office is located 7600 Wadsworth Blvd suite 200B, Arvada CO 80002 its a class b space. They are replacing carpet and paint in the unit. Space is 1,200 sf with 2 months free rent 3-14 $19.00 NNN, $19.50 NNN and $20.000 NNN the CAM is $12.64 per sf.

Please let me know your thoughts.
Looks at comparables.

Check out Loopnet or whatever dominates the local market. Figure out the cost per square foot in that area for something similar. Then negotiate down as much as you think possible.

Note: commercial real estate is currently at an all time high. Office space is getting more and more vacant. Prices are high but you have negotiating power.
 
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Danny reds

Danny reds

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So did some research on the market. About 8 to 10 miles away in Broomfield Co found class A space for $19.50 Sf NNN and 5 Miles away found Class B for $15.00 sf NNN. @AgainstAllOdds @LightHouse
 

LightHouse

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So did some research on the market. About 8 to 10 miles away in Broomfield Co found class A space for $19.50 Sf NNN and 5 Miles away found Class B for $15.00 sf NNN. @AgainstAllOdds @LightHouse
I am not familiar with that area, is it a big city? 19.50/sqft NNN seems really.... really expensive for a normal sized area or suburban office space. Downtown may be different.

It might be worthwhile to engage a reputable commercial agent in your area so they can dig up good local comps from costar and help you negotiate a bit. on NNN there usually isnt much room to move but it really depends on several factors like market availability, space sizes and conditions, comps, etc.

The other major thing to consider with NNN is the property and space condition. Because in NNN the owner only takes care of the walls, roof and parking lot plus the associate maintenance of those items and snow removal. So if your space has no HVAC it is on you, if it has existing you want a report of the condition and how old it is because it will become your responsibility for up keep.

When you get a bit deeper into the process after you find a space, you are more than welcome to reach out and we can jump on a 10 min call to go over some things if you've done the prep work on it already.
 
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Danny reds

Danny reds

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Thanks for all the information guys! Light house maybe we can set up a call for Friday?
 

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