Retail Expenses in MU Model (w Office)
I’m underwriting a mixed use development with office over retail. I’ve been told retail tenants will likely not pay their pro rata share of the CAMs for the entire building, but wanted to ask the forum how to best think through what building recoverable expenses CAN be assigned to the retail tenants, and in what proportion. Think taxes, contract services, insurance, utilities (submetered electric) etc...
If retail is 10% of the building’s NRA (assume office is 90%), then are there expense types where retail is likely NOT paying 10% of said expenses due to disproportionate benefit going to the office users etc? Thanks
For record my office opex is around 18-18.50 psf and am told retail should be around 14.
Ab vero tempora et quasi. Ea ratione odit sit earum. Esse placeat est excepturi sit qui veritatis consequatur. Aperiam libero quo necessitatibus debitis. Autem provident ducimus voluptatibus. Neque nesciunt a voluptatem quam et est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...