Can anyone ballpark commerical lease avg sqft prices on 30-A?

[vgunn]

Hello All,

Long time lurker, first time poster.

Trying to find out what are some prices going for commerical lease space on 30-A.

Thanks in advance!

 

[Matt J]

They vary greatly. You probably need a Realtor that works in commercial leasing. I've seen commercial going for anywhere from $1/sq ft to $20/sq ft. Just depends on the size, location, age, decor, and many other issues.

Good luck.

 

[Beach Bimmer]

Some feedback from one who shopped it thoroughly last year for both a potential new business venture and a renewal where we're at long-term:

In Seaside, the lowest last year was about $23 per square foot, with a high around $45.00 a square foot. Their initial rates quoted were 25-50% higher depending on landlord, yet the number of vacancies has been too great for them to hold the line on prices. Places like Gulf Place and Rosemary can be had for more like $16-30, and the smaller complexes like Uptown Grayton and Mystic Porte can be the lower still if you negotiate well.

Never, ever take the initial rates they offer as most were indeed inflated 25-50% from where you should end up; learn about CAM fees and how much they'll cost you long-term; find out if the lease takes a percent of sales beyond a breakpoint; and use a CCIM-certified agent who truly knows commercial leasing. PM me and I can recommend one.

 

[Em]

As mentioned, the price varies greatly on 30A. A stand alone space in Seagrove will be much less than WaterColor, Seaside, Rosemary, etc. You can expect to get quotes around $25-$28 per square foot, triple net for some of the better locations.

 

[robertsondavies]

As mentioned, the price varies greatly on 30A. A stand alone space in Seagrove will be much less than WaterColor, Seaside, Rosemary, etc. You can expect to get quotes around $25-$28 per square foot, triple net for some of the better locations.

Murray, the term "triple net" the way you're using it - does that mean, that the $25-28/sq ft quote for a Seaside space, would INCLUDE, taxes insurance and maintenance? Does that encompass CAM?

Thanks Murray.

 

[robertsondavies]

Murray, the term "triple net" the way you're using it - does that mean, that the $25-28/sq ft quote for a Seaside space, would INCLUDE, taxes insurance and maintenance? Does that encompass CAM?

Thanks Murray.[/QUOTE


What are the standard renewal terms. Is the initial term typically for 1 year, or more? Are renewal rates, prenegotiated, and available at the option of the tenant? (i.e. renewal availalbe for years 2 through 6 at tenant option, with notice, for Year 1 rate, plus CPI (CPI as example) )

 

[vgunn]

Thank you for the responses. This was exactly what I needed.

 

[Matt J]

Murray, the term "triple net" the way you're using it - does that mean, that the $25-28/sq ft quote for a Seaside space, would INCLUDE, taxes insurance and maintenance? Does that encompass CAM?

Thanks Murray.

Murray, the term "triple net" the way you're using it - does that mean, that the $25-28/sq ft quote for a Seaside space, would INCLUDE, taxes insurance and maintenance? Does that encompass CAM?

Thanks Murray.[/QUOTE


What are the standard renewal terms. Is the initial term typically for 1 year, or more? Are renewal rates, prenegotiated, and available at the option of the tenant? (i.e. renewal availalbe for years 2 through 6 at tenant option, with notice, for Year 1 rate, plus CPI (CPI as example) )

No one is going to let you open your golf cart business.

 

[Beach Bimmer]

the term "triple net" the way you're using it - does that mean, that the $25-28/sq ft quote for a Seaside space, would INCLUDE, taxes insurance and maintenance? Does that encompass CAM?

I can't speak for Murray, but the rates I quoted in my post did not include CAM fees. Most rates you see quoted are the base rate per square foot, with CAM, taxes, insurance, maintenance, etc. being additional expenses. Some landlords will quote a low cost per square foot, say $15, and then build in higher CAM costs and annual increases to pad their "low rate" back up to the higher dollar amount they wanted all along.

Buildout is another item that sometimes is negotiable. Most 30-A landlords won't contribute toward buildout expense, but some will give a free month or two to offset your buildout costs.

As for length of term, it all depends on the negotiations. Longer term usually means lower rate. Most of what we looked at offered 3-5 year terms, with a 3-7%increase in base rent annually.

Your mileage may vary. Buckle up for safety. Objects in the landlord's mirror may be smaller than they appear...

 

[Em]

triple net, meaning those expenses of taxes, insurance and maintenance are additional. Some places will also have CAM fees as additional expenses. I don't handle commercial leasing, but I would think the additional fees of taxes, insurance and maintenance will cost you another $5-$7 per sq ft.

Leases will vary from project to project. If a strip is empty, perhaps they will work out terms in order to attract good businesses. If a place stays rented and the location draws in the money, expect to pay premiums and possibly a percentage of gross income.