Rent vs Total Occupancy Cost

Rent vs Total Occupancy Cost

Base rent is only part of the story. Total occupancy cost includes: Operating expenses. Taxes. Insurance. Maintenance. Utilities. Construction amortization. I often see business owners focus on the rent number while overlooking the total financial impact.

From my perspective, occupancy cost should be analyzed like any other major operating expense.

/ Commercial Real Estate

About the Author

Lynn Drake’s status is well known in the industry: She’s the commercial realtor focused on maintaining “true north” for her corporate clients. It’s a reputation built on 35 years of commercial real estate experience. Lynn became a commercial realtor in 2001 after 15 years in corporate real estate. Thus far in her career, Lynn has successfully completed over 1,500 real estate transactions ranging from small business tenant leases to the sale and purchase of industrial complexes.