Quote:
Originally Posted by sdubfid
Hehe can you explain a commercial Warehouse rent in Canada? For example $15/sq foot and then $5NNN rent. The warehouse is 1500sq ft. So the renter would pay $20*1500 annually and IĀ’m only responsible for damage to the building? They cover strata, tax etc?
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NNN or triple net means that the tenant is responsible for 3 things, property taxes, building insurance and building maintenance. In a lease agreement, you would usually have terms covering these 3 costs, among many things and what goes into each of the 3 costs. But the industry standard is NNN as it gives a clear idea on how much rent is the tenant actually paying since once you take those 3 items out, there's really not much a landlord needs to pay. But it can vary what's included. For example, maintenance can be everything or just anything non-structural.
In regards on x amount per sqft, it's usually a yearly figure. So, if it's 1500sqft warehouse and the we (CRE ppl) say that it's $15/sqft. The rent (yearly) would be 15*1500=22500. In your particular case, that $5NNN is ther additional cost to cover for the 3 things I said before. And that's 5*1500 per year. Some might do it in monthly basis figure, but when you are dealing with CRE people, whether it's your realtor or lawyer, they usually speak in yearly figures divided by the square footage.
Which brings an important thing on CRE, never make assumptions. Everything needs to be on paper.