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SmartPea85
03-04-2014, 04:05 PM
What percent of your income should go to the rent of a storefront? How do I know if it's a smart move and if I can afford it in the long run?

Jessi
03-04-2014, 09:38 PM
I think that would depend.

Are you already running a business and now you're wanting to move into a brick and mortar store? If so, then you will already have some numbers you can work from.

If you're opening up a brand new store, then I would recommend researching the average income that's coming from nearby local stores in the same area and see what it would take in order for you to produce similar numbers.

daleo717
03-04-2014, 09:59 PM
:DHi, I would say that the income percentage you should pay for your storefront is somewhere between 20 to 30 percent. I made the huge mistake of paying $1495 per month for my storefront and my income was only $3000 per mth. So I basically was paying 50% of my income for rent. Boy what a mistake!!!

After all of the expenses to run a store such as hydro, advertising, bank fees, salaries, restocking, and misc. expenses I could not make ends meet. There was no money left to give me a salary and I had no savings for this problem I encountered. My rent for the store was way to high for the income I generated. I would say the cheaper you can find a storefront the better. I live in a large city and there are still some storefronts for around $700 - $800, but they can be hard to find. I guess it depends on much space you need.

You may also want to share with someone and that would make the cost go down by 50%. I used to work in a building where 3 ladies shared an office space and they each paid only $200 per month. It was right on the Main Street and it worked out well for them. If it's viable you may want to consider working from out of your home or basement. But whatever you do, make sure you don't over pay for the storefront or you could end up filing bankruptcy.:-?

tspires2
03-05-2014, 09:19 AM
I agree completely! I have had to close a store because of the rent being too high! It was my 1st store and I guess you live and learn but it doesn't really make it ok so try to do it right the 1st time! I would say rent should be no more than 20-25% of your monthly income. Remember to keep your income expectations realistic and you should be able to plan accordingly.

foduu1
03-06-2014, 03:02 AM
We have were required to close up a retail store as a result of hire becoming too much! It had been my personal 1st retail store as well as I assume your home is as well as study but it really doesn't really help it become okay so make an effort to do it right the 1st time! I would point out hire should be no more than 20-25% of this regular monthly earnings. Make sure you maintain your earnings objectives realistic and you will be able to plan accordingly.

eppie
03-08-2014, 04:58 AM
Have you considered sharing store space with another business owner? This will greatly lessen your rent expense. But I think not all business is applicable to this type of set-up. In our community I've seen a coffee shop owner sharing store space with internet shop owner. There's even a tattoo parlor owner teaming up with a restaurant owner. I guess a lot of planning and consideration is needed but it's an option. :)

Jessi
03-08-2014, 07:35 PM
Have you considered sharing store space with another business owner? This will greatly lessen your rent expense. But I think not all business is applicable to this type of set-up. In our community I've seen a coffee shop owner sharing store space with internet shop owner. There's even a tattoo parlor owner teaming up with a restaurant owner. I guess a lot of planning and consideration is needed but it's an option. :)

You're right! My mom is actually doing something very similar where she has a shop in the front and someone else has one in the back. She's lucky that there are actually separate rooms, but it's in the same building because it was a remodeled fast food building. Because they technically only have one set of utilities, though, then that cuts down the cost for both of them, too.

mikelouis
03-09-2014, 05:29 AM
I guess you just have to workout some numbers to see if it will viable depending on how much you are making as a business. Every move should be carefully analysed to see if it possible to make the move or not.

fredkawig
03-09-2014, 09:21 AM
If the rent is cheap and that you can produce more profit that paying for the rent. Maybe 10% will do. And profit is the other 90%, that's a good percentage for me. As much as possible rent should be free or you should own your own place.

LindaKay
03-10-2014, 07:05 PM
I think it depends on what you're doing and what your potential for income is. I would look around; some businesses do well in out-of-the-way locations, and around here, you can rent smaller office buildings with utilities and such included for a surprisingly low rate.

Taru
03-21-2014, 04:10 AM
I think nowadays, renting a store would only be a smart move if it were absolutely necessary for the business, such as needing a pickup place for customers or having to have the space for consultations and browsing. Otherwise, if it can be done online, I would definitely just keep it to the online market as much as possible. It would be an unnecessary expense if you end up incurring expenses for it such as electricity and maintenance that are completely avoidable in the online market.

LindaKay
03-24-2014, 04:47 AM
It all depends, really. I definitely agree that your overhead costs are lower when you operate solely online.

bingaguilar
03-24-2014, 04:59 AM
I think rent should not eat up more that 25% of your income. But it would also depend if you're just starting out and still have to build up your reputation. You would have to sacrifice giving up a bigger portion to rent if that's the case. As long as you think your location has high foot traffic and your business has a lot of potential in attracting more customers in the future, then you can allocate as much as 40% of your income for the first few months. Then review your books after six months. If you see an increase in sales then your rent-income proportion should be quite balanced by then.

Davidrguernsey
10-06-2015, 05:18 AM
I agree completely! I have had to close a store because of the rent being too high! It was my 1st store and I guess you live and learn but it doesn't really make it ok so try to do it right the 1st time! I would say rent should be no more than 20-25% of your monthly income. Remember to keep your income expectations realistic and you should be able to plan accordingly.

Very Informative post Thanks.

Anthonyesullivan
10-06-2015, 06:22 AM
What percentage of your revenue is going to the book of a storefront? Just how do I know if it's an intelligent move of course, if I can afford it in the long haul?

KennethCBragg
10-24-2015, 10:38 AM
Real estate business is biggest investment and profit able business

carolgcampbell
11-04-2015, 11:44 AM
If you're opening up a brand new store, then I would recommend researching the average income that's coming from nearby local stores in the same area and see what it would take in order for you to produce similar numbers.

Malik Suleman
11-27-2015, 03:09 PM
:DHi, I would say that the income percentage you should pay for your storefront is somewhere between 20 to 30 percent. I made the huge mistake of paying $1495 per month for my storefront and my income was only $3000 per mth. So I basically was paying 50% of my income for rent. Boy what a mistake!!!

After all of the expenses to run a store such as hydro, advertising, bank fees, salaries, restocking, and misc. expenses I could not make ends meet. There was no money left to give me a salary and I had no savings for this problem I encountered. My rent for the store was way to high for the income I generated. I would say the cheaper you can find a storefront the better. I live in a large city and there are still some storefronts for around $700 - $800, but they can be hard to find. I guess it depends on much space you need.

You may also want to share with someone and that would make the cost go down by 50%. I used to work in a building where 3 ladies shared an office space and they each paid only $200 per month. It was right on the Main Street and it worked out well for them. If it's viable you may want to consider working from out of your home or basement. But whatever you do, make sure you don't over pay for the storefront or you could end up filing bankruptcy.:-?

agree with you

Angalfaria
07-24-2019, 10:06 AM
Real estate business is biggest investment and profit able business

But also need a huge capital.

annedroee
02-27-2020, 06:58 AM
I think 7% is enough for rent.

Lilykevin95
06-02-2020, 12:33 AM
Quest for Storefront properties for rent on LoopNet.com. Discover Storefront property postings, Storefront property ongoing deals comparables or locate a specialist...

Lilykevin86
06-04-2020, 01:35 AM
What It Costs to Rent a Retail Space. Picture shows an attire store. Content peruses: Know the very good quality and the low finish of other retail leases in the region where you need your store to be. Retail Kiosks as Storefront Alternatives.

TangelThor
06-18-2020, 06:31 AM
Most areas have an average price per square foot. For example, a store in a popular shopping center located directly in front of a busy highway may run $23 per square foot. So for 1,900 square feet, that would cost approximately $3,642 per month.

TangelThor
07-06-2020, 05:01 AM
A storefront or shopfront is the facade or entryway of a retail store located on the ground floor or street level of a commercial building, typically including one or more display windows. A storefront functions to attract visual attention to a business and its merchandise.

amelyjcob
10-21-2020, 09:04 AM
How does leasing a storefront work?
It essentially lists who the Tenant is, who the Landlord is, the premises you will be renting, the term of the lease in years, any options to renew your lease, the base rent you will be paying, the expenses of the shopping center, any free rent you will get in order to build out your store, the security deposit.

master007
11-05-2020, 01:42 AM
I agree completely! I have had to close a store because of the rent being too high! It was my 1st store and I guess you live and learn but it doesn't really make it ok so try to do it right the 1st time! I would say rent should be no more than 20-25% of your monthly income. Remember to keep your income expectations realistic and you should be able to plan accordingly.

Lilykevin86
01-12-2021, 02:21 AM
Most territories have a normal cost for each square foot. For instance, a store in a well known mall found straightforwardly before a bustling parkway may run $23 per square foot. So for 1,900 square feet, that would cost around $3,642 every month.