Asked by Sim
Hi, need to seek professional advise here. I am currently on a 3+2 yrs lease contract and my first 3 years will be due in next 6 months. Current monthly rental is $2.20 psf and my landlord request the remainder 2 yrs rental rate to be $3.20 (A dollar increase per square foot). My area is around 7000 sqft. Reason given for the increase is high property rate. In my contract renewal clause states that "rent to be agreed on the prevailing market rent".
Question 1: Can the commercial property tax cause this big jump of rent increase? I thought property is only 10% of the annual value?
Question 2: How do we determine the "prevailing market rate"? Is there any professional body that we can engage?
Thanks for the advise.
Question 1: Can the commercial property tax cause this big jump of rent increase? I thought property is only 10% of the annual value?
Question 2: How do we determine the "prevailing market rate"? Is there any professional body that we can engage?
Thanks for the advise.
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