How to Determine Current Market Lease Rates Per Square Foot in Commercial Real Estate

Understanding the market lease rates allows both landlords and tenants to make well-informed decisions when it comes to leasing commercial properties in your market. On the subreddit r/CommercialRealEstate, users discussed the best approach to determining these numbers.  Here are some of the tools and methods to get the numbers right.

Engage with Brokers for Insider Knowledge

One of the most reliable ways to determine market rates is by talking to commercial real estate brokers. Brokers have up-to-date knowledge and access to actual signed lease data, such as recent lease comp rates, offering insights that online listings might miss.

If you want to sell or lease commercial property in Columbus, Ohio, the brokers at ELIFIN® specialize in specific property types and are experts in their local market.

Building relationships with brokers can provide you with comparative reports and detailed market analyses that are far more accurate than general listings.

Utilize Professional Tools and Platforms

When starting your search, websites like Costar, LoopNet, and Crexi will be the first to pop up online. These industry-leading platforms are designed to give you a comprehensive view of the market, but the information can be challenging to interpret and sort through. 

It’s important to remember that the lease rates you see on websites like these are the “asking lease rates,” not the actual dollar amount a property leases for. Some of these websites will keep a record of real lease rates that tenants are paying, but this information is typically behind a paywall.

Searching online platforms is a great way to get a snapshot of market rates, but be aware that sometimes they don’t show the full picture. Different markets have varying levels of negotiation flexibility, and specific terms and conditions can vary significantly between markets. 

Understanding these nuances is important to accurately determining lease rates, so you need to supplement online data with real-world insights.

Leverage Other Sources

Appraisers can be a great source of comparable lease data. Their evaluations are based on extensive market knowledge and can provide you with accurate insights.

One great resource to stay up-to-date on commercial real estate trends in Columbus, Ohio is The Pulse, a weekly newsletter powered by ELIFIN® which features data compiled and reviewed by the in-house research team. This is the same research team that supports ELIFIN brokers in leveraging their knowledge and insight to make great deals.

If you combine professional tools, broker insights, and your own evaluations to make informed, strategic decisions, you’ll be well-equipped to determine current market lease rates per square foot in commercial real estate.

For more insights and personalized advice about commercial real estate in Columbus, Ohio and beyond, visit ELIFIN® or call us at 800-895-9329. 

Elifin Realty
No Comments

Post A Comment