In some commercial real estate deals, the landlord asks for “key money”.
Basically, there is something already of value in place in the space.
The example in this video is a former restaurant space, what we call a second generation restaurant space.
The landlord here is asking for key money, meaning the new tenant coming in.
What the landlord is looking for is for the new tenant to pay an initial upfront fee, known as key money for keys for this space, and they’re able to use and take advantage of all the infrastructure already in place as you see behind me.
In this example the new tenant will pay for key money plus whatever the rent is for the space.
That is what is known as “key money” in commercial real estate.
USF, stands for Usable Square Feet, and RSF stands for Rentable Square Feet. This is extremely important specifically in the office building setting. For example,
How much money do I need to do a commercial real estate lease? It all varies, it depends on one who the tenant is, and
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