# Industrial property leases



## mtl83 (May 23, 2011)

Hello money forum,

I have a question about industrial real estate.

Usually properties for lease are advertised something like that:
Size: 127000, Net Rent: $4.75, T.M.I: $2.10, Gross Rent: $6.90

what does that mean?


I have a friend who wants to lease roof on an industrial property and they would like to know if it's possible to lease a roof  Anybody has such experience? If an industrial property is leased through an agent, how much does the agent take for the service (industry average), any ideas?

thanks


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## grimace (Feb 20, 2010)

Hi

For industrial or commercial space the rental is usually what is known as a NET lease. This means that you pay a rent, say 4.75 per square foot, as well as ALL the expenses associated with the space - known as TMI or CAM (Taxes, Maintenance and Insurance or Common Area Maintenance) which will be given as a dollar figure TMI of 2.10. The gross rent should be the total of these two (4.75 + 2.10) (in your examole it does not but it should). What you pay is square footage times the total ( 127000 X $6.85 = 869950) which equals a yearly amount (869950 / 12 = 72495 per month). 

It should be possible to lease a roof provided it will structurally support whatever you want it for.

An agent will either take a percentage of the total value of the lease (usually 5-6%) for example a five year lease for the above rate would be 869950X5 = $4349750 time 5% = $217484 or they will charge a months rent....


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