Hi Everyone
I have something I’m working on, and I am trying to figure something out that’s way outside my area of expertise. I’ve recently joined a small company, and some jobs just don’t have an assigned person.
I am looking at leasing a small chemistry lab on Long Island. Without going into too much detail, I was a bit surprised that the lessor has asked ME to propose a price per square foot. They want me to propose, and give a rationale for my “fair market value.”
My suggestion, of course, was that they contact a real estate agent and ask them. But for whatever reason, they don’t want to do that.
I know it’s odd, and there’s no point in fighting the reason behind this, so I was wondering if anyone knows how I can estimate pricing for a fully equipped lab on LI (meaning, all the usual chemistry stuff, an LC, a GC, benches, storage, etc)
It’s a long shot, but any thoughts?
Would it be a breach of ethics if you called several real estate agents yourself, got a list of figures and took an average?
i use Loopnet when I’m hunting for commercial real estate to buy or lease. If nothing else it’ll tell you what other similar properties in your area are going for which seems more like what you’re looking for, an easy way to figure out market value.
Thanks both.
I found Loopnet, but it didn’t seem like any of the listings were for equipped labs. The real estate agents I have spoken to want to see the space, etc. and I’m not actually in New York.
I know it’s an odd situation. There’s a group that’s building a new facility, and wants to keep the old one but doesn’t need it until/unless they expand again. And we need the space, so its a natural fit. But the lessor seems to want us to do all the work. Which is fine, but…
This sounds like enormous risks for both the lessor and lessee.
What if the lessee brings in hazardous chemicals or there is an explosion in the lab or a hazardous chemical requiring extensive remediation is spilled or worse makes it to the city drainage.
What if the lab is already contaminated ?
Who pays for the upkeep/maintenance of the lab ? Who pays for servicing the GC, or the hood fans …? How do you account for equipment depreciation?
Well, obviously responsibilities will have to be outlined in the lease. But people lease lab space all the time, there’s nothing unusual about any of that.
I’ve done dozens or hundreds of agreements over the years, and we just outline all that and we specify who carries what insurance.
The issue is that I’ve never leased a lab with all the equipment in it before, and pricing it is proving difficult. We’re happy to be responsible for the upkeep and ultimate replacement of equipment. The lab has been in use for years, so it surely has lots of nasty chemicals in it. Indeed, mine is a very small field so I don’t want to say what’s in there (you never know who might be a Dope reader) but it isn’t nice stuff at all.