Commerical Brokerage Question???

[BlackedoutF250]

Hey Guys,
Im looking at buildings as I mentioned in an earlier post and one of which is the buildings in anaheim off the 91 at kramer. My question is if they are asking 1.30 triple net for a 10k sq/ft building right off the freeway what should I offer them what would be reasonable. They are brand new buildings and there is a tilt up building down the way on the freeway that is also up for lease and the rate is .70/45000 sq/ft ranging down to 1.00/6000 sq/ft. If anyone can offer me some assistance I would greatly appreciate it.
Thanks John
Unique Performance West, Inc.

[locogringo]

Depends on the scenarios. I am assuming it is listed with a commercial broker. How many months have they been trying to fill it? What is availabel surrounding this area and what are they going for?
If a tilt up is at $1.00, is that triple net as well?
Personally, I would start at .87-.97 sqare feet as a starting point (just to see what happens) and go from there.
You should be able to get it at $1.1 to 1.15 IMO.
Daniel
Hey Guys,
Im looking at buildings as I mentioned in an earlier post and one of which is the buildings in anaheim off the 91 at kramer. My question is if they are asking 1.30 triple net for a 10k sq/ft building right off the freeway what should I offer them what would be reasonable. They are brand new buildings and there is a tilt up building down the way on the freeway that is also up for lease and the rate is .70/45000 sq/ft ranging down to 1.00/6000 sq/ft. If anyone can offer me some assistance I would greatly appreciate it.
Thanks John
Unique Performance West, Inc.

[al cole'holic]

..what would be the term of the lease they want with those numbers? My experience with new buildings is they won't flex much at all on the price if any...UNLESS you agree to a longer lease term. If this 1.30 price is where they want you at let's say 2-3 years, the ball would be in your court for sure if you sprung a 5 year term on em. Also it would be highly advised for you to get a Realtor on your side in a commercial situation as using the owners would mostly benefit their side. They make all their commissions up front so putting you in there at 1.30 on the dot is their goal first and foremost..good luck for sure on the biz, we've seen you post on this before keep us updated!

[BlackedoutF250]

The building is up by CBRE and when we spoke to the realtor he said the owner is an investor and paid cash in full for the building. Like I said the only building in the area is the one about 6 buildings down and its up for 1.00/sq ft for 45000 sq/ft triple net and Im at 1.30 for this building for 10k sq/ft triple net. The buildings pretty much perfect and its right on the freeway would be perfect for advertisment etc.
Thanks John
Unique Performance West, Inc.

[al cole'holic]

The building is up by CBRE and when we spoke to the realtor he said the owner is an investor and paid cash in full for the building. Like I said the only building in the area is the one about 6 buildings down and its up for 1.00/sq ft for 45000 sq/ft triple net and Im at 1.30 for this building for 10k sq/ft triple net. The buildings pretty much perfect and its right on the freeway would be perfect for advertisment etc.
Thanks John
Unique Performance West, Inc.
..if it makes sense to you and you are ok at 1.30 worst case scenario, make an offer at a lower rate with the term as your leverage. The extra 35k sq' on the other building makes sense that it would be .30 cheaper. Too bad my CBRE connection now flips burgers in Tahiti..

[BlackedoutF250]

So 1.30/10,000 sq/ft makes sense and Im sorry the other building is 0.70/45,000 sq/ft and 1.00/6000 sq/ft all triple net. Ya I wish there was an easy way it just sucks I wish I could find a building off the freeway in Corona because I the last building that sold out there went for .68 gross for 25k and I could have used 25k but I was a day late, and now Im really close to needing a building I have to been something by the end of the month.
Thanks John
Unique Performance West, Inc.

[al cole'holic]

So 1.30/10,000 sq/ft makes sense and Im sorry the other building is 0.70/45,000 sq/ft and 1.00/6000 sq/ft all triple net. Ya I wish there was an easy way it just sucks I wish I could find a building off the freeway in Corona because I the last building that sold out there went for .68 gross for 25k and I could have used 25k but I was a day late, and now Im really close to needing a building I have to been something by the end of the month.
Thanks John
Unique Performance West, Inc.
..ah, my bad on the price for the 45k sq'...that is a big difference but then again its bringing in 31.5k/mo. It sucks but anytime there is a brand new commercial development they ask for and get ridiculous rents. Freeway exposure is pretty big as well...