This post originally appeared on tBL member Lynn Drake's blog Compass-Commercial Blog | Expert Commercial Leasing Advice and is republished with permission. Find out how to syndicate your content with theBrokerList.


Across the country, building owners charge different rates for electricity, usually based on their  climate. An electrical rate in Troy, Michigan will be far different than that charged in Phoenix, Arizona. Even in the same area, landlords can charge far more than their neighbors.


Electricity is usually a cost center for the landlord.

We were working on a project on Kirts Boulevard in Troy, MI, and looking at two almost identical buildings. One charged $1.80/s.f. for electric, the other $1.25/s.f.

I was positive that the first agent made a mistake, what with the big difference in cost. Turned out, they wanted their location to appear less expensive, when in reality, they were charging more.


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