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    3 Replies Latest reply on Nov 2, 2007 10:58 AM by DomainDiva

    Leasing basement level space

    JavaJoe Wayfarer

      I am in the process of negotiating a space for lease. Half of the square footage is on streetlevel and the other half is below/basement level. Given this, I am assuming that I shouldn't be paying a premium for all of the space. So, approximately how much cheaper per square foot should basement level property be per square foot? How can I figure out what the going rate should be?
        • Re: Leasing basement level space
          Lighthouse24 Ranger

          If the basement is just a storage area, the total should be considerably less per square foot than the market rate. Unless the entire square footage is fully accessible as defined by the Americans with Disabilities Act (ADA), you shouldn't lease it for top dollar -- and if it's not accessible, that's can be a source of leverage in your negotiation.

          If you haven't negotiated this type of lease before, you might contact a commercial real estate advisor in your area for a consultation -- not only to get an informed recommendation on what you should be paying, but also to advise you what is reasonable and customary in such deals, and to review the proposed lease agreement on your behalf. I did that on my second commercial lease, and wished I had on the first. The input and advice I received was money well-spent.
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          • Re: Leasing basement level space
            LUCKIEST Guide
            Tell us more. What kind of business?? and what part of the country??( Not that matters, just good background info.)
            Lighthouse had a great answer and part of the answer depends on LOCATION.
            With real estate it is always about location. That is why there are professionals like accountants,
            lawyers and real estate advisors. The real estate advisor should be on your side, should know the area,
            also what else is available in the area and what the going rate per square foot is.
            Then go see a lawyer. Good luck, LUCKIEST
            1 of 1 people found this helpful
            • Re: Leasing basement level space
              DomainDiva Ranger
              I checked your profile to make sure you were in New York City, but what borough? (It was the word basement that clued me in :) ). If you are in a hot location and the space is already finished out...the rent will be higher, but if not finished maybe there would be some work you could do in exchange for a better per square foot price. (I am obviously groping in the dark here....I realize NYC property is hot).

              The best advice I could offer would be to try and get some area per square foot comps and maybe talk to some of the other business owners that will be your neighbors real soon!