Friday, January 8, 2010

What Does a Market Building Vendor Pay in Rent?

This shot of the food court in City Market Building is from the mezzanine^

I got an interesting question from a reader who didn't want her name used yesterday: "Do you know what the average monthly rent is for a restaurant vendor in the city market building?"

I put that to Melinda Mayo of the Roanoke City Public information office and she came back with the following:

"Space is rented to Market Building vendors by the square foot. However food vendors and retailers pay at different rates. Food vendors pay $28 per square foot [per year] plus a common area maintenance (CAM) fee of $300 per month. Retail vendors are paying $24 per square foot, plus $250 per month for CAM fees.

"As their month-to-month leases have reached the 12-month period, CAM fees increased by three percent. Food vendor booth stalls range from 136 square feet (the smallest [about $4,000 a year]) to 1,438 square feet (the largest [nearly $40,564 a year]). There are three retail vendors: Seeds of Light, 435 square feet ; Gone Co-Co, 742 square feet ; and Azar 418 square feet ."

Ed Hall of Hall Associates, which rents a good bit of commercial property in Roanoke, says those rents "sound fine" in a competitive sense. "Small spaces go for a lot more per square foot than comparable large spaces would," he says. "You're looking at some very small spaces here and my guess is that it would cost about $15 [per square foot] just to have them open" for rental. Full service office space downtown, by comparison, would run $15 to $25 a square foot typically, says Hall, "but you really can't compare the two because they are so different."

2 comments:

  1. Wait! Don't you think it ironic that we are publicly discussing & evaluating lease rates for space in the "market" building? Isn't that determined by negotiation in the market?

    I suggest the more clarifying discussion might focus upon the scale or class of tenants and vendors. If we're happy with our current tenant mix, then why shouldn't they have been an integral part of the renovation plans for the project? If we're not pleased with our current tenants, then what class of tenant might be required to support the entire renovation cost?

    Since it is a "public" building, discussions of greater impact deserve public discussion.

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