How to Calculate the Monthly Cost of Renting Warehouse Space

How to Calculate the Monthly Cost of Renting Warehouse Space

By Nathan K. Smith

AustinTenantAdvisorswww.AustinTenantAdvisors.com

One of the main decision factors in choosing a Warehouse space is cost, so you want to make sure you get this right.

Building owners and landlords quote rates different so it can be confusing• Yearly Rate - $8 sf per year• Monthly Rate - $0.67 sf per monthYou are also responsible for operating expenses (taxes, insurance, maintenance). These are also referred to as triple nets (NNN) or Common area maintenance (CAM’s)• Yearly Rate - $4 sf• Monthly Rate - $0.33


Information you Need


Calculating your monthly cost involves 3 things1. The size (in square feet) warehouse you are leasing2. The base rental rate3. The estimated operating expenses

Example #1 – Landlord Quoting Yearly Rate


Sf of prospective Warehouse Space = 10,000 sfQuoted base rental rate = $8.00 per yearEstimated operating expenses = $4.00 per yearTotal asking lease rate = $12.00 per year

Monthly Rent = 10,000 x $12 / 12 = $10,000 per month

Example #2 – Landlord Quoting Monthly Rate


Sf of prospective Warehouse Space = 10,000 sfQuoted base rental rate = $0.67 per monthEstimated operating expenses = $0.33 per monthTotal asking lease rate = $1.00 per month

Monthly Rent = 10,000 x $1.00 = $10,000 per month

Other Costs To Consider• Electric - $1 to $2 sf per year• Janitorial – $1 to $2 sf per year if you need it.• HVAC Maintenance - $500 to $1000 per year.

Landlord will more than likely require that you hire a 3rd party hvac technician


Do You Have Any Questions?


If so you can contact me at:

www.AustinTenantAdvisors.comNathan@AustinTenantAdvisors.com512-861-0525

http://www.austintenantadvisors.com/

mailto:[email protected]

How to Calculate the Monthly Cost of Renting Warehouse Space


Real Estate

How to Calculate the Monthly Cost of Renting Warehouse Space