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Procurement Market Intelligence Report

Commercial Real Estate Rental
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Commercial Real Estate Rental?

What is the average price of Commercial Real Estate Rental?

This procurement report includes pricing information to help you purchase Commercial Real Estate Rental. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Commercial Real Estate Rental been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Commercial Real Estate Rental yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Commercial Real Estate Rental?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Commercial Real Estate Rental with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Among the estimated 282,000 commercial real estate lessors, the top four players account for less than 30.0% of total market revenue, signaling a low level of concentration. Most lessors are nonemployers that service small local real estate markets within the United States, so they lack the necessary resources to garner... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Condition of the Property

What types of improvements will likely need to be made during the lease term and how much will they cost?

Am I responsible for the costs of any improvements to the property?

How well has the property been maintained? Can you provide a three-year maintenance history for the property?

How recently has the building been inspected and what were the results of the most recent inspection?

Timing to Delivery

When does the lease require the tenant to start paying rent?

Is the start of the rental period fixed or does it begin when the space is ready to be used?

What happens if the construction is delayed or falls behind schedule?

What happens if repairs are required during the lease term?

Rent Increases

Is my rental rate dependent on the revenue generated in the space? If so, what percentage is used?

Do I have the option of switching to (or from) a percentage rent after a certain period of time?

Is rent scheduled to increase at all during the lease term? If so, what is the basis for these rent increases? Is there a cap to the amount rent can be increased?

Can the lease agreement include a clause that keeps rent from increasing for the first year?

Lease Details

What is the amount of the security deposit? What would cause the tenant to lose their security deposit? How often do tenants receive their full security deposit back? What percentage of the security deposit is typically returned?

Can the lease include an arrangement that allows me to vacate the space if an anchor tenant leaves the property?

What zoning laws is the property subject to? To what extent do they affect the operations of the business?

Does the lease allow for expansion of the property?

Does the lease allow for subleasing or co-tenancy?

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Key elements for every RFP

What should my RFP include?

Project Budget

Vendors should include the base rental rate for the property.

Vendors should include other costs for which buyers are responsible (i.e. utilities, parking, etc.).

Vendors should list any improvement allowances or concessions offered (i.e. free month of rent), as well as any limitations on these values.

Buyers should reference the Benchmark Price and Total Cost of Ownership sections of this report for assistance in creating a budget.

Selection Criteria

Buyers should evaluate each property based on its rental rate and other costs.

Buyers should evaluate the overall quality of the property (i.e. its type, amenities, features, parking, etc.).

Buyers should evaluate vendors' ability to meet their service requirements.

Buyers should evaluate vendors' experience and financial performances.

For other selection criteria requirements, buyers should reference the Buying-Decision Scorecard section of this report.

Project Schedule

Buyers should include the date when proposals are due and any other relevant dates (e.g. property tours) prior to the contract award.

Buyers should include the date by which the property must be available.

Evaluate major factors to mitigate risk

How risky is the supply chain?

Supply chain risk for commercial real estate rental is moderate. Commercial real estate lessors source inputs from a multitude of upstream suppliers, including real estate sales and brokerage firms, property management companies, electric power transmission companies and finance and insurance companies. Most large, institutional lessors rely heavily on services from... Subscribe to learn more.