The rent range is only part of the price
| Offering | Annual asking rent/SF | Expense basis |
|---|---|---|
| 1919 Lakeland Dr · Jackson | $18–$20 | Modified gross |
| 10 Canebrake Blvd · Flowood | $19.50–$20.50 | Full service gross |
Two publicly advertised office offerings illustrate the issue. CBRE lists 1919 Lakeland Drive in Jackson at $18–$20 per square foot per year on a modified gross basis. Its 10 Canebrake Boulevard offering in Flowood quotes $19.50–$20.50 on a full service gross basis. The asking ranges overlap, but the expense labels differ.
The practical question is which expenses the lease places on the tenant. Taxes, insurance, maintenance, utilities, janitorial service and expense increases can change total occupancy cost. A lease label is a starting point; the actual provisions determine the allocation. Free rent, improvement allowances and the cost of preparing the suite also affect the economics over the lease term.
These two advertisements do not establish that Jackson or Flowood is cheaper, or that either corridor commands a rent premium. They show why a headline asking rate cannot answer that question by itself. The quotes are publicly advertised terms reviewed October 17, 2026, not verified completed leases or confirmation that the space remains available.
A nearby property may serve a different tenant
A tenant needing a small office suite does not necessarily have a workable alternative in a large block of space, even when the building is nearby. The comparison must account for a suitable suite, delivery condition, parking, access and the cost of moving in. A medical practice can have additional requirements that make general office space an imperfect substitute.
The same reasoning applies to industrial property. Loading, clear height, yard area, truck circulation, power and the required building size can narrow the choice set sharply. Counting all advertised warehouse square footage together can make the market appear well supplied while saying little about the options available to a particular user.
For owners and brokers, this suggests a better first question than “What are properties in this county asking?” Ask instead: “Where else could this tenant realistically operate, and at what total cost?” The answer may include a property in another county and exclude several buildings in the same neighborhood.
Contract rent and market rent answer different questions
Contract rent is the rent required by an existing lease. Market rent is an opinion of the rent a property could command under the relevant market conditions and lease terms as of the effective date. An older lease, a negotiated improvement package or a different expense allocation can create a gap between them. That gap needs explanation before it supports a valuation conclusion.
For an appraisal of a leased property, the lease, amendments, rent roll and expense records help establish what is actually being paid and who carries the costs. Verified competing leases help test market terms. Asking listings help identify alternatives and the terms owners are seeking, but they cannot establish achieved rent, concessions or absorption on their own.
Before ordering an appraisal or setting an asking rent, assemble the existing lease documents and identify the likely user. Then compare feasible alternatives on a consistent basis: usable space, condition, lease duration, expense responsibility and concessions. This makes the market evidence more useful to an owner, lender or prospective tenant.
This article introduces The Tri-County Commercial Property Letter. Future issues will examine supported local patterns across competing corridors and property types, including properties that are repriced, remain available or leave the market. The aim is to help readers understand the choices behind a property decision and the evidence that could change it.