Office Buildout with Option to purchase - Posted by huy

Real Estate Investing Office
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Posted by ray@lcorn on July 26, 2009 at 09:17:20:

Huy,

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.

ray

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Office Buildout with Option to purchase - Posted by huy

Posted by huy on July 13, 2009 at 16:59:05:

I’m currently looking into a 2 year lease to buy CRE deal. The building is a free standing 1800 sq ft dental office. I’m looking to spend ~80-100K on buildout converting into an eye clinic.

Is it fair to ask for credit on final purchase price from buildout and/or 2 year lease payments? If so, at what percentage?