A quick and informal poll question about rent...

I am not looking for you dollar amounts or sales amounts…please let me know what you pay for rent as a percentage of sales.

Currently in 2 of my shops I pay 2% of my sales is rent. In the 3rd however i am approaching 9%. Now this is a location that is in a smaller market and prime locale. But my landlord sales that through some obscure poll in an even more obscure publication that Pizzerias pay 8.5% of sales for rent on average in shopping center leases.

I have been doing this for 20 years and worked for the big guys and the little guys. I do not recall ever being charged this much.

Please respond.

Thanks in advance,



 I've never, nor will I ever negotiatie sales into my lease.  I'm not knocking you but I am curious:  Why would you do something like that?

 I've always been a believer that rent should be paid based upon square footage of the place you're in.  You can go anywhere from $6/square foot all the way up to $30/square foot.  It all depends on what the area is demanding, and how good your negotiating skills are.  I've never considered rent a variable cost.  Hope this helps. -J_r0kk

We are charged a flat rate of rent… hmm but if i caculate rent vs sales, then its 7% right now… but of course that is never the same, since sales go up and down.

My rent works out to almost exactly 2% including all cam charges and taxes. Add garbage in and i’m looking at about 2.2%

I own my building (ok the bank does LOL!) but Rent in my neck of the woods is going for $24 a foot plus $3.50 a foot in cams. I am not open yet so I can’t really help you out on sales percentage.

Dale is only paying per square foot. He was just asking to get an idea based on how good the location and area and thus the sales are. This is just to get an idea on what other people are paying.

I’m around the 9% myself. Believe it or not, prior tenants DID pay rent based on a certain %. I think the reason why was that the owner of the building would “sell” the business to someone who was on a low budget for a few thousand down, and after a year or so, they would throw in the towel, and the landlord would “sell” it again to the next sucker. We opted not to go with his easy payment plan and we bought the business and equipment outright. Hopes are that by the time the lease is up, we will be able to get into our own building.
Tom R

I’m at about 1.8%. :smiley: hehehe, landlord’s a sucker -J_r0kk

I just figured that my rent is $1450/month and my sales avg. is $8600 a month. So 1450/8600=16.9%

Food cost is 35% and Labor is 25%. No wonder I am broke!

I have 3 years of records for a pizza place I used to own almost 10 years back…For 3 years, premise costs averaged 8.6%…That included rent and common area costs…RCS…

I am at 2.7% base rent add in my common area costs and it is 3.8%

In my one shop my rent is 5% and my other shop is 4%.

Daaang! That r0kks! Wanna trade?
Tom R

LOL, I just did a lot of research and a lot of fast talking. That usually get’s 'em a little confuddled. It’s not THAT great a deal, though. It’s a relatively small town and I’m at $7.54/square foot with only 1035 square feet of space. -J_r0kk

like i stated i am at 1.7% and 1.8% at my 2 busy shops. I fired off a letter to the landlord trying to get $16 per square…he had just sent me an offer shett for $24. The Pizza Hut around the corner is @ $13sf. Of course they are closing here in the next month (or so the rumors go). But my actual lease is not up until Oct 2008.

We’ll see what happens…

Thanks for all the responses.

NP… Tell Mork and Mindy I said “HI”. -J_r0kk