When comparing commercial properties for rent you will find that they are not all alike. Obviously they are more than likely office, medical, retail, or warehouse, however there are other differences about them that can make it hard to choose between them.
When they are different It’s important however that you know all your costs involved for each and be able to create an apples to apples comparison.
For example suppose your a medical business who is looking for commercial office space for rent and it didn’t matter whether you leased professional office or medical office space. When looking at spaces what you will find is that in some office or medical office buildings landlords cover the cost of electric & janitorial charges (they include in your quoted rent), while others require that the tenants set up and pay for their own electric and janitorial costs.
If you like both of the commercial office properties equally how to you compare them both apples to apples to determine which one is the better deal?
The only way to to create simple spreadsheet analysis like I did in the photo on this blog post. As you can see for one property I left as $0 because here the landlord pays for electric and janitorial costs. While in the other property I inserted $1.50 for electric and $1.00 for janitorial. By doing this I am able to calculate a full service equivalent for both properties to determine what my estimated yearly and monthly costs will be. Now I’ve estimated the electrical and janitorial costs, however based on my analysis of usage for all my clients those are pretty accurate averages. That being said it does depend on your usage and level of service. For example for janitorial you might want cleaning service 3 days a week as opposed to five days per week.
At then end of the day all you care about is determine which one is the best deal when you like both spaces equally. There are other costs to consider however this will get you started.
If you have any questions about leasing medical office space or others, or have questions about how to compare different commercial properties to one another feel free to contact us.