What’s Up with Electrical Rates in Commercial Buildings

What’s Up with Electrical Rates in Commercial Buildings


Across the country, building owners charge different rates for electricity, usually based on their  climate. An electrical rate in Troy, Michigan will be far different than that charged in Phoenix, Arizona. Even in the same area, landlords can charge far more than their neighbors.


Electricity is usually a cost center for the landlord.

We were working on a project on Kirts Boulevard in Troy, MI, and looking at two almost identical buildings. One charged $1.80/s.f. for electric, the other $1.25/s.f.

I was positive that the first agent made a mistake, what with the big difference in cost. Turned out, they wanted their location to appear less expensive, when in reality, they were charging more.



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.