Office Rental Factors
- Class "A" Space: $16.00 - $20.00 sq. ft.
- Class "B" Space: $12.00 - $15.00 sq. ft.
- Real Estate Tax, Bldg Insurance, Exterior Maintenance: $3.00 sq. ft.
| Lease Structure | Modified gross, some net |
| Utilities | $2.00 - $2.25 sq. ft. |
| Janitorial | $1.00 sq ft. |
| Build-Out | Usually by Landlord |
| Capitalization | 8% - 10% |
| Vacancy | 10.15% |
Class “A” - Building has an excellent location and access to attract the highest-quality tenants. Meets or exceeds building code. Building is of superior construction and finish, relative to new or competitive with new buildings, and provides professional on-site management. Rents are competitive with new construction.
Class “B” - Building has a good location, management, construction, and tenancy. Construction and physical condition are good and meet building code. May suffer some physical deterioration or functional obsolescence. Rents are below those of Class “A” buildings and new construction, but may be able to compete at the low end of Class “A” market.
Class “A” and Class “B” definitions are taken from Commercial Investment Real Estate Journal.
Factors shown are for general office space. Medical and other special use designs will alter these general guidelines. Leases for “A” properties are often structured on triple net basis. Leases “B” properties are more commonly structured on modified gross basis.
Gross Basis: Tenant pays base monthly rental and utilities and janitorial, but Landlord pays real estate taxes and building insurance. Maintenance responsibilities vary by each property circumstance. This is the second most common practice in the market.
Modified Gross Basis: Landlord pays base year bldg. insurance, real estate taxes. Tenant to pay increases over base lease year (base lease yr. is usually defined as first lease yr.). Roof and structural maintenance by Landlord. Tenant pays own utilities, own janitorial, own yard/lot maintenance, and own mechanical maintenance (with some limits). This is most typical arrangement in market, though some are “triple net”.
Triple Net Basis: Refers to lease structure where-in the tenant pays the quoted monthly rental and additionally tenant pays for the leased building/site real estate taxes, building insurance, and maintenance. This is done on pro-rata share basis in multiple tenant buildings. Tenant also pays own utilities and own janitorial.
SOURCE: This information has been provided by Paul Land, Plaza Real Estate Services Commercial Division (Ph: 573-445-1020), through sources it deems reliable. It is intended to provide our customers and clients with a general overview of market conditions in the Columbia, Missouri area. Individual properties have unique characteristics and circumstances, which must be taken into consideration on a case-by-case basis. A qualified commercial real estate broker can assist in evaluating specific properties and opportunities. Regional Economic Development, Inc. (REDI) and commercial appraisers Cannon-Blaylock Appraisal and Moore-Shyrock Appraisal have been authorized by Plaza Real Estate Services to re-distribute this information to prospective, customers, clients, and related inquiries. Questions about this report should be directed to Paul Land or Mike Grellner of Plaza Real Estate Services.