I recall somewhere our rent % s/b around 9%
If so, I’m way off that mark…
Would anyone like to share their store size (in sq. ft.) & the % of their rent? (rent & CAM fees paid divided by gross sales)
In the past glory days, our rent % for a 1400 sq. ft. store was still over 12%…
We’ve yet to hit those #'s, so our rent bite is more extreme now…
paul7979:
1200 feet and 1.77%
You da man Paul! That’s pretty awesome.
I’m at 1500 sq. ft @ 9%
yes…I’ve been 2 Paul’s store - he actually runs his multi-million operation from his garage …
Paul has a very busy operation that puts most of the major chains to shame…
Someday, I plan 2 b as busy as his store, when UCF grows up!
steveo922:
1150 sq feet, 50%
lol
But Steve, all that extra you spend on occupancy costs you save in labor costs!
Just to clarify a bit,
When you are posting your “rent” are you using your base rent or your “occupancy cost” which would include common area expenses like insurance, taxes, maint? (insurance and maint are only for the building)
Our base rent (paid to myself) is 7.5%. Occupancy cost is 8.8%. This is on 1620 square feet.
The above mentioned 9% guidline is just that. As you can see, many folks pay less and less is obviously good. On the other hand, when occupancy is above 10% it becomes very difficult to survive. There just are not a lot of places to make up the lost points. One of the place is marketing. If your occupancy is 13% but your location provides such traffic that you need no marketing then 13% is probably OK.
As one consultant that posted here for a while a few weeks ago pointed out, there are deals to be had out there right now where lower occupancy is possible. Long term, however, lower than 7% is pretty hard to find and higher than 12 is pretty hard to survive.
bodegahwy:
Just to clarify a bit,
When you are posting your “rent” are you using your base rent or your “occupancy cost” which would include common area expenses like insurance, taxes, maint? (insurance and maint are only for the building)
Our base rent (paid to myself) is 7.5%. Occupancy cost is 8.8%. This is on 1620 square feet.
The above mentioned 9% guidline is just that. As you can see, many folks pay less and less is obviously good. On the other hand, when occupancy is above 10% it becomes very difficult to survive. There just are not a lot of places to make up the lost points. One of the place is marketing. If your occupancy is 13% but your location provides such traffic that you need no marketing then 13% is probably OK.
As one consultant that posted here for a while a few weeks ago pointed out, there are deals to be had out there right now where lower occupancy is possible. Long term, however, lower than 7% is pretty hard to find and higher than 12 is pretty hard to survive.
Wow… As much as I want to be optimistic, I just don’t think thats achievable at my store.
for instance, my CAM fees are just OUTRAGEOUS - $593.75/mo…
we’re in a small mostly service strip center (10?) on a major road - limited landscape care - 3 restaurants
bodegahwy:
Just to clarify a bit,
When you are posting your “rent” are you using your base rent or your “occupancy cost” which would include common area expenses like insurance, taxes, maint? (insurance and maint are only for the building)
Our base rent (paid to myself) is 7.5%. Occupancy cost is 8.8%. This is on 1620 square feet.
The above mentioned 9% guidline is just that. As you can see, many folks pay less and less is obviously good. On the other hand, when occupancy is above 10% it becomes very difficult to survive. There just are not a lot of places to make up the lost points. One of the place is marketing. If your occupancy is 13% but your location provides such traffic that you need no marketing then 13% is probably OK.
As one consultant that posted here for a while a few weeks ago pointed out, there are deals to be had out there right now where lower occupancy is possible. Long term, however, lower than 7% is pretty hard to find and higher than 12 is pretty hard to survive.
Sorry to bump up and old thread, but I’m wondering…
Just want to make sure I’m getting this correctly… If my rent is $2,100/month, does that mean I need to be doing $21,000/month to achieve the 10%?
1400 sqft and just under 1% roughly .08%
bodegahwy:
Just to clarify a bit,
When you are posting your “rent” are you using your base rent or your “occupancy cost” which would include common area expenses like insurance, taxes, maint? (insurance and maint are only for the building)
Our base rent (paid to myself) is 7.5%. Occupancy cost is 8.8%. This is on 1620 square feet.
The above mentioned 9% guidline is just that. As you can see, many folks pay less and less is obviously good. On the other hand, when occupancy is above 10% it becomes very difficult to survive. There just are not a lot of places to make up the lost points. One of the place is marketing. If your occupancy is 13% but your location provides such traffic that you need no marketing then 13% is probably OK.
As one consultant that posted here for a while a few weeks ago pointed out, there are deals to be had out there right now where lower occupancy is possible. Long term, however, lower than 7% is pretty hard to find and higher than 12 is pretty hard to survive.
Please forgive my ignorance but am I correct that your rent based on above example (9%)…is just under $1500.00 a month…Not to single you out…your just the last post…
