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    alexwong's Avatar
    alexwong Posts: 1, Reputation: 1
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    #1

    Dec 24, 2011, 09:23 AM
    Lease buy out
    How to calculate a commercial lease buyout?

    Out of Pocket Expenses during Construction Period:
    Equipments purchased/leased (minus any re-sell value)
    MISC items purchased (minus any re-sell value)
    Construction labor cost
    Insurance premium
    Loans and interests, penalties,
    Other professional services, attorney, Architect, accountants,
    Township permits and licenses, inspections
    Partners' time invested
    Travel expenses
    Cost of living for temp housing during the construction period
    Employee/personnel hired

    Projected loss from the time of closing to establish a new location:
    Projected loss of business branding values
    Projected monthly profits loss x number of months of interruption of business Employee termination fees and severance packages
    Projected equipment depreciation
    Projected loss of time for renovation
    Any possible court judgments for early terminations of personnel and services
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Dec 25, 2011, 10:10 AM
    I am sorry it took so long to see and find your question. You posted this as a answer to a 3 year old question, so honestly you are lucky anyone even saw it.

    First from whose side, remember the renter does not have to ever agree to the buyout, so it is not a set rule, the person who owns the lease will want to offer as little as possible, and the renter will either not want to at all, or get the most they can.

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