10) Numbers: Crunch ‘em
- Go analytical early and often.
- Know what’s in the lease and what exactly you are and are not paying for.
- If you are paying for utilities, have your broker find out what average utility bills are for the building. If you are paying a pro rata share of taxes, insurance, and operating expenses over a base year, find out what those costs are and how they have been escalating over the last five years.
- What effect does free rent and other incentives have on the bottom line of the deal. Always figure out your effective rate.
- Rates are not always the best indicator of a good deal. It’s the final numbers that count.
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