Large retailers sometimes have to pay the landlord a percentage of revenues, over and above a base rent rate, plus a pro-rata share of common area expenses such as landscaping, water, electricity, repairs, property taxes and hazard insurance. These operating expenses, called NNN or triple net expenses, in addition to the base rent can often increase rent by as much as 30%.
Retail Market In New Orleans and Metairie MSA For July | August 2020
There are 647 retail properties for sale and for lease, with 2.1 million square feet in 473 properties for lease at an average price of $16.17 per square foot and 1.8 million square feet in 174 properties for sale at an average price of $158. The last 30 days, 13 properties were leased and 3 were sold. The amount of time it has taken to sell or lease retail property averaged 481 days, up 100% from last 3 months’ 228 days, but the average time over the last 2 years has been 253 days. This can be a shock to the average buyer or seller, as well as agents, since residential property usually sells within a week in popular areas or, at most, 3-4 weeks in unpopular areas. Commercial transactions are more complicated since they involve businesses and permits and employees and higher dollar financing, so days on the market numbers are not as relevant.