hi
can anyone enlighten me about this;
the owner of an unrenovated commercial building secures a possible tenant who wants to open a restaurant which would cost @$400,000 to fitout the building.
i'm assuming that with that sort of outlay, the tenant would expect the rent to be much lower than market rents and that the tenant would also want a ten year lease. wouldn't that therefore hold the value of the building really low for the length of the lease?
if a tenant spent that kind of money, when would the rent be expected to catch up to market value?
can anyone enlighten me about this;
the owner of an unrenovated commercial building secures a possible tenant who wants to open a restaurant which would cost @$400,000 to fitout the building.
i'm assuming that with that sort of outlay, the tenant would expect the rent to be much lower than market rents and that the tenant would also want a ten year lease. wouldn't that therefore hold the value of the building really low for the length of the lease?
if a tenant spent that kind of money, when would the rent be expected to catch up to market value?