BIG DAVE........Square Footage Costs???

To all the current and former shop owbers out there…I am looking at a 1,200 sq ft space for my first place, so I was wondering if there is a rule of thumb as to your rent should not be more than a % of your gross monthly sales?

Hi Jeff,
The rule of thumb I use is rent at about 5%. Then we add iin CAM, Gas, Elec, Fire Ins, to get to total cost of occupancy. I like to hold this at 8-9% of gross.
In some ‘high rent areas’ of the country this is impossible. The rents are high. When this is the case I really look for ways to maximize sales to compensate.
Rent is never too high for ‘the perfect location’. Gross is usually too low.


Welcome home Big Dave- it’s good to see you’re back!