Commercial lease question (calculate, buy, property, costs)

[Prehistory]

This is a warehouse, approximately 4000sq ft. It sells for approximately $1.3 million. The lease is

$12/sq plus 5% increase per year.
Operating costs are $4.3/sq.

How do I calculate the annual rental cost?

$12/sq * 4000 = $48,000
$4.3/sq * 4000 = $17,200

$48000 + 17200 = $65,200. Is this the monthly rental or the annual? I'm guessing that this has to be the annual cost.

Thanks for your replies.

[Carolina_fan23]

It's annual... if you can get that much for a monthly rental then buy it and rent it out

[pghquest]

Originally Posted by Prehistory

This is a warehouse, approximately 4000sq ft. It sells for approximately $1.3 million. The lease is

$12/sq plus 5% increase per year.
Operating costs are $4.3/sq.

How do I calculate the annual rental cost?

$12/sq * 4000 = $48,000
$4.3/sq * 4000 = $17,200

$48000 + 17200 = $65,200. Is this the monthly rental or the annual? I'm guessing that this has to be the annual cost.

Thanks for your replies.

As carolina said, thats yearly, and it sounds like a very poor investment..

$65,200 even if its a NNN lease at a cap 10 makes the property worth $480,000 ($12sq*4000*10)

[sunsprit]

A warehouse at $325 psf to buy?

As in open space warehouse facility of 4,000 sq ft?

Is it built with gold plated platinum beams? Solid gold fixtures in the bathrooms? Diamonds and rubies encrusted light switches? Sterling Silver loading dock ramps?

What would make a warehouse structure so expensive psf? Is it all "blue sky" location?

And, as pghq points out ... the lease cash flow doesn't come close to supporting such a price, so it's unlikely that it's such a valuable location.