Posted by ray@lcorn on July 26, 2009 at 09:17:20:
It is typical in lease/purchase deals to negotiate some amount of rent credit toward purchase price. In this case the significant tenant improvements should also be factored into the final settlement price.
How much? That gets the standard answer to every question is real estate… it depends. As a starting point I would use the amortization amount of the owner’s existing loan (if any) or the annual amortized cost of the leasehold value.