I am frequently asked the question on how monthly commercial rents are calculated. Residential rentals are very simple in the sense that the monthly amount quoted is more or less what a tenant pays +/- some stipulated inclusions or exclusions.

Commercial leasing generally follows a relatively consistent process or sequence of events. I want to lay out some of the basics to provide a first time tenant with a high level road map of how the process evolves.

Investing in residential real estate has some distinct differences from investing in commercial property. Generally speaking commercial real estate investments deliver higher financial yields but there are some caveats to consider that can rule out many investors.

I frequently meet new clients who are intent on purchasing their business premises under the old adage “I am better off putting money in my own pocket than someone else’s.” Owning commercial real estate where you are your own tenant can be extremely rewarding and act as an excellent retirement savings/wealth generator for a business operator. 

Many people never even give consideration to the fact that commercial and residential real estate are 2 very different professions, with very little in common aside from the Realtor designation that shows up on their business card.