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Updated over 4 years ago,

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Dave Zirkelbach
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3
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Question regarding selling property with long active lease

Dave Zirkelbach
Posted

I have a commercial property with 15 years left on the active lease.  My question is, does that 15 year lease raise the value of my property at all?  Meaning, the building has it's own value, but will the lease with the tenants raise the value at all to my sale?

Here are some very rough numbers

Building built in 2015 for 1 million

20 year lease signed at that time, lease with CAM fees (only CAM is property tax) is roughly 15k/mo.

Is that 15k/mo lease of 15 years worth anything when I go to sell the building?

This is a family situation, I own the building, sister runs the business, but it is damaging our relationship so I'm looking to dump the building, but looking to recoup my potential gains if at all possible.

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