Tag Archives: retail rental

Differences between Apartment & Commercial Leases

Renting a storefront like this will probably be quite different from renting an apartment or a house.

I’m not really sure how people learn about renting out apartments, but by the time they hit the market for the first time they generally have a basic idea of the premise. You pay someone money and exchange you get to live in their building. They handle the maintenance (for the most part) and you leave their building in decent condition when you depart. Easy enough. There are some variances from area to area in terms of what utilities are customarily included and how large/small/old/new the buildings are. Even so, a relative newcomer to apartment hunting can figure it out despite language barriers and regional variances.

I’ve been working on leasing out a retail storefront in Irving Park lately, and have realized that with commercial spaces the learning curve is far more complex – possibly because business owners come in with preconceived notions based on how the rental housing market works. However, once you switch over to renting out commercial property the whole thing goes out the window. America in all of its messed up glory offers an entire menu of options, arrangements, terms and add-ons for business owners. Meanwhile I’d like to take today to explain a bit about the differences between renting an apartment and renting a storefront, office or other commercial property. If you’re out to start your own business or purchase a mixed use building (maybe with my help?) you can use this as a bit of a guide. If you’re working for a company that leases their space, maybe this will give you an idea of why your boss keeps stressing out about the rent. (more…)

Chicago Real Estate Statistics: Porker’s Index

Harper’s Index has always been one of my favorite sources for trivia. I’ve nicked their format once before and it was a blast. Since Friday is the day when I count things for you it’s time I return to that format for a smattering of curious figures.

Number of true search results in Amazon’s library for:

  • “How to be a good landlord”: 91
  • “How to be a good homeowner”: 100
  • “How to be a good tenant”: 0
  • “How to be a good manager”: 2,535
    Source: Amazon.com as of June 10, 2012

Number of Google search results for:

  • “I hate my tenants”: 47,500
  • “I love my tenants”: 118,000
  • “I hate my landlord”: 985,000
  • “I love my landlord”: 3,480,000
  • “I hate my job”: 6,130,000
  • “I love my job”: 29,600,000
    Source: Google.com as of June 10, 2012

Number of new Chicago Craigslist postings in an hour for:

  • Apartments for rent: 950
  • Jobs – all categories: 26 (note: Craigslist charges to post job ads in Chicago)
  • Computers for sale: 15
  • Missed connections: 6
    Source: chicago.craigslist.org between 6:25pm and 7:25pm on June 10, 2012

Average student loan debt for 2010 grads:

  • Illinois state average for 4-year college graduates in 2010: $23,885
  • School of the Art Institute of Chicago: $39,306
  • University of Chicago $22,359
  • NEIU: $10,976
    Source: projectonstudentdebt.org

Other things you could buy for $23,885:

  • 3/4 of a year’s rent in a luxury 2 bedroom Chicago West side Loft condo (Source: ConnectMLS)
  • A 2012 Ford Mustang. (Source: [1])
  • 28.8 Top end Ipads with Cell service. (Source: apple.com)
  • 31.4% of one year of an average Chicago public school teacher’s salary (Source: [2])
  • 55.4% of one year of an average rookie Chicago cop’s salary (Source: [3])
  • 871 shares of Facebook stock today.
  • 42 shares of Google stock today.
  • 19% of a single share of Berkshire Hathaway stock today.
    Stock sources: Google Finance

Average list price per square foot per month for:

  • Lakeview 2 bedroom rental (assuming 700 sq ft per 2 bed): $3.27
  • Lakeview 2 bedroom condo purchase distributed over 30 years: $1.30
  • Lakeview storefront rental up to 700 sq ft: $1.83
    Source: ConnectMLS

US National Interest rate averages as of mid-June 2012:

  • 36 month new car loan 3.44%
  • Standard 30 yr Fixed Mortgage: 4.21%
  • Stafford student loan: 6.8%
  • PLUS student loan: 8.5%
  • Average Business credit card w/o “rewards” APR: 13.13%
  • Average “Student” credit card APR: 13.16%
  • Target Credit Card: 25.24%
  • Chicago payday loan, repaid in 2 weeks: 405%
    Sources: (Bankrate.com, [4], [5], [6])

Base Rent rates for interesting commercial spaces:

  • 7500 sq ft of storefront space on Division in Wicker Park: $23750/mo
  • 8000 sq ft next to Circuit Nightclub on North Halsted: $13000/mo
  • 2400 sq ft former 7-11 with parking lot in Lincoln Square: $4800/mo
  • 6250 sq ft dog care facility w. equipment on Western in Roscoe Village: $3500/mo
  • 5000 sq ft church in Austin for Sunday afternoons and one weeknight: $1500/mo
    Source (Loopnet)