Michael S
Senior Member
- Joined
- Mar 18, 2009
- Professional Status
- Certified General Appraiser
- State
- New Mexico
I dealt with something similar recently.
In the end I provided fair market rent for the property. A temporary lease for one or two days a month or whatever it might be is going to be almost impossible to support. In addition, paying an appraiser to figure it out will probably cost more than such an agreement would actually generate. I suspect the client ended up doing something along the lines of take the total rent, dividing it by the amount of space used and the number of days used and then tried to see how much more than that the market would bear. So for example if the monthly rent is $5,000 for a 5,000 SF office and they're "subleasing" 500 SF for one day a month the lowest they should accept is (1/30 * $500 = $16.67). In reality they may be able to negotiate several times that.
In the end I provided fair market rent for the property. A temporary lease for one or two days a month or whatever it might be is going to be almost impossible to support. In addition, paying an appraiser to figure it out will probably cost more than such an agreement would actually generate. I suspect the client ended up doing something along the lines of take the total rent, dividing it by the amount of space used and the number of days used and then tried to see how much more than that the market would bear. So for example if the monthly rent is $5,000 for a 5,000 SF office and they're "subleasing" 500 SF for one day a month the lowest they should accept is (1/30 * $500 = $16.67). In reality they may be able to negotiate several times that.