Pricing Commercial Office Space and Negotiating

[Peter Wisber]

Hello BP community! 

I'm reaching out for a gut check on some strategy / pricing on a commercial office space complex I recently invested into. Fortunately the majority of the units are occupied except for one. The vacant unit is approximately 1,994 SF and was previously a doctors office but is in need of some cosmetic updates including new flooring, paint and likely an upgrade or significant maintenance on the HVAC system. It's located in a very up and coming town with high traffic at around 15k per day. I currently have it listed at $23 per SF, but that's factoring  in the likelihood of me splitting or covering the costs to bring the unit up to spec for the potential tenant. This price per SF is slightly higher then local competition, so I'm concerned the higher price tag is pushing away potential tenants. Would it be more advantageous to price it lower to get potential tenants on site, and then negotiate increases per SF depending on what they're looking for? 

Any advice would be great as this is my first dive into commercial, woo hoo!

Here's the listing if you would like to have a look - https://www.loopnet.com/Listin...

- Pete