What is the best approach for determining the fair market rent a retail property can generate in a particular area. I just inherited a retail property in Los Angeles and we need to figure out how much we can expect to receive in rent. Thanks, Jeff.
Look for retail properties in the same condition and area that yours is in and find out what they are getting. Call a few real estate agents and find out what they would offer it for. Better yet maybe you could hire a local management company to take care of it for you.
I am sure others on here can help you more than I can with the retail industry, but I figure it can not be too different than multi-unit residential properties or self storage facilities.
Make sure you put in your contract that for each new year their rent will be raised $1 dollar per sq foot. You can make it more depending on how desirable the property is.