I want to open a childrens store that offers new and used children's products, such as clothing strollers carseats and such. I have done a LOT of homework on it and am in the finding a location phase. Because of the nature of the business I can't afford a high lease to start but it seems that everyone is charging a lot these days.. I want to know if anyone has any insight on how to go about finding something and getting in cheaper to start off and as the business grows (hopefully) I can pay more . Oh and the when they say $10 per sq/ft on a retail space is that a month or a year and then divide that per month. I am confused because a lot of places want anywhere between $15-25 per sq/ft. I hope I am not being too confusing. thank you to all that can help.
#1. "RE: leasing location" In response to Reply # 0
Rent per square foot is as follows.
You have a space that is 1000 square feet at $10/square foot. Multiply those two numbers to get $10,000. Now divide that number by twelve to get your monthly rent, which would be $833.33.
You may also have to pay a portion of taxes and the existing insurance, so when talking to a realtor, make sure to ask if there are other costs added to the rent!
You can always negotiate with the realtor or building owner. If they like your business, they could be inclined to cut you a deal, say three months free rent while you do your set-up, painting, etc. OR if the space has been vacant for a long time, you could negotiate a lesser rent -- such as half for the first 6 months, then, increase to what they are asking.
In business --- just about everything is negotiable. Be sure to do your homework first. The building owner is looking to make money. If you appear to not know much about the rental process --- you could be in danger of being taken advantage of.
Talk to local commercial realtors for the inside scoop on commercial leasing.
#2. "RE: leasing location" In response to Reply # 0 Fri Jun-29-07 07:04 AM by bizdev
In my area $15 - $25 psf is the norm.
In addition to the property taxes, you may also be responsible for CAM charges (common maintenance fees). So if you are told the rental rate is $15 psf, ask if that includes CAM and property taxes. The CAM rate is usually about $2 - $5 psf. Also be aware that if you negotiate a rental rate of $15 for the first two years with an increase of 3% per year thereafter....the property tax and the CAM charges can be increased at any point for any amount. Don't assume that your monthly payment won't increase until year 3 (as in the example here).