Hi All,
I'm looking at one area and can determine how to value a leased property or an unleased property
But there's one available (office space) with only a month by month in place, where they have not renegotiated the lease.
The lease is only a little below market, so could only be increased a small amount i think.
Unfortunately the asking price is at the value one would value it as a normal leased property. However month by month has that risk involved that the re-negotiation may not go well.
How would you guys value this?
Would you get it under contract and then try and re-negotiate lease during the due diligence period? How do you handle the risk not being able to sign the new lease until after settlement?
I'm looking at one area and can determine how to value a leased property or an unleased property
But there's one available (office space) with only a month by month in place, where they have not renegotiated the lease.
The lease is only a little below market, so could only be increased a small amount i think.
Unfortunately the asking price is at the value one would value it as a normal leased property. However month by month has that risk involved that the re-negotiation may not go well.
How would you guys value this?
Would you get it under contract and then try and re-negotiate lease during the due diligence period? How do you handle the risk not being able to sign the new lease until after settlement?