Real Estate Rent Assessment?

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November 27, 2025

by a searcher from The University of Michigan - Stephen M. Ross School of Business in Downingtown, PA, USA

I’m in a deal process where the real estate is owned by the sellers but not part of the deal today. They have been increasing rent to normal levels on the P&L but not certain what I should put as market rent. Does anyone have a calculator or how you go through estimating rent payments?
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commentor profile
Reply by a searcher
from Emory University in Tucson, AZ, USA
Start by benchmarking using Crexi and consider engaging a commercial broker to assess market rent and alternatives that may impact you lens towards future growth needs, if the property owners and you can't come to future renewal agreements, etc. We've had scenarios that were acquiring, lease-back, and relocation and there were significant differentials for both same and different markets. Remember, it's important to fully load market rent to be inclusive of annual rent, common area maintenance costs, property tax sharing, if you have responsibility for any repairs/maintenance (not uncommon in triple net leases that the tenant is responsible for replacing HVAC), etc.
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Reply by a lender
from Indiana University of Pennsylvania in Pittsburgh, PA, USA
Great information above that also will help you in negotiating fair market rent. Since the Real Estate is not part of the deal today; I'd recommend analyzing what they are proposing with full details for all-in cost as mentioned by previous poster. Would ensure their proposal is not full of extreme escalators for a period of time that allows you to operate (if getting SBA loan - would be a requirement to have options on your end for at least the term of the SBA Loan). Can provide additional details or questions redacted
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