We've been approached by our commercial tenants to add a walk-in refrigeration unit to the commercial kitchen. The capital cost of this is approximately $30K, and I'm wondering if there's a general formula that any of you routinely use to derive a general lase increase value per month, taking into account deprecation, R&M etc. Neither party wants to engage a valuer as it will introduce additional cost.
Obviously, there are other variables that can be used in the final negotiation such as extending out the lease term etc. but having a base figure to start with would be useful.
I've searched through the forums and haven't found an obviously answer, with most of the discussion centering around residential.
How have you other approached this calculation in a commercial setting?
Obviously, there are other variables that can be used in the final negotiation such as extending out the lease term etc. but having a base figure to start with would be useful.
I've searched through the forums and haven't found an obviously answer, with most of the discussion centering around residential.
How have you other approached this calculation in a commercial setting?
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