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Lease Prices & Negotiations

briankb

briankb

Premium Subscriber
We are looking at leasing a retail space in town. Currently we all work from home and I have the shop in my back yard in it's own building with offices. The new space will only be for walk-in traffic, design workstations, and photography. All of the sign equipment and machines will stay at my home office.

I called around this morning and got some prices on available properties. A 1,600 sq ft space in one of the newer locations is going for $2,800mo on a 12mo lease. And the person suggested there was room to negotiate. This is a small town in North Florida. We have a Super Walmart and thats just about it.

I'm curious to the average price for lease space and how much room I have to negotiate. How much do you pay for how much space?
 
Bigdawg

Bigdawg

Just Me
In our area? You'd pay half that right now...

EDITED TO ADD:

Let me explain a little further... a year and a half ago, the units in my building were renting for close to $2000 or so with a 5 year lease. Now they're going for about $1200-$1400 on a 3-year lease. Commercial rental property has dropped like a rock in our area.
 
Circleville Signs

Circleville Signs

New Member
Yeah - it all depends on location.

Right now there is a VERY nice building int he historical district of a nearby town that has it's space for $2/sf - and that INCLUDES UTILITIES.

The thing with retail space right now is that it is still a buyer's market. I would talk to them about a few different options.

1. 12 month lease, $2k/month

2. 24 month lease, $2400/month, first 3 months free

3. 12 month lease, $2,500/month, including all utilities


Throw some offers out there. The worst thing that can happen is they say "no".


Gary
 
briankb

briankb

Premium Subscriber
I always thought there prices were ridiculous. When I lived down in Palm Harbour there were 500+ sq ft retail spaces going for $300 or less per month.
 
signgal

signgal

New Member
central Fla area... busy road, small plaza, no anchor store

3yr lease/$1700/mo (they haven't lowered it either, even with other plazas popping up)
 
Mosh

Mosh

New Member
We leased out part of our building for 10 years to a pizza place. 90'x60' $1500 per month is what we got We did not renew the lease cause we needed the room and they were messy and the place was real dirty.

Our town is 7,500 people with a Super-Wal-mart as well. A new strip mall next to wally gets $3,500 for 2,500 sq feet.
 
O

OCsteve

New Member
We have so much empty retail space in our area that I would never have to pay $21 per sq ft. The key question is can you generate enough additional work to make that space profitable.
 
M

mark in tx

New Member
On a 1600 sq/ft space, I would offer them $800.00 a month, 12 month lease.

No, I'm not kidding.

Also, they would not get any percentage from profit, like some retail spaces do.
 
briankb

briankb

Premium Subscriber
mark in tx said:
On a 1600 sq/ft space, I would offer them $800.00 a month, 12 month lease.

No, I'm not kidding.

Also, they would not get any percentage from profit, like some retail spaces do.
Click to expand...

That is exactly what I was thinking. Thanks for the feedback!
 
S

Slamdunkpro

New Member
mark in tx said:
On a 1600 sq/ft space, I would offer them $800.00 a month, 12 month lease.

No, I'm not kidding.

Also, they would not get any percentage from profit, like some retail spaces do.
Click to expand...

Wow, around here 2700 sq ft goes for around $3700/month. there is tons of empty commercial space in the area and no, they won't negotiate. It's amazing, they'd rather let it sit empty.
 
Checkers

Checkers

New Member
Check the local classifieds for average sq ft cost and start interviewing agents.

Also start searching here to read about the pros and cons of renting a retail space.

Checkers
 
J

Just Another Sign Guy

New Member
there is so much empty space around here that they'll almost pay you to move into a space and make it look like something is happening...prices literally as low as a quarter a sq ft. i know of one strip mall location where the owner will give you back up to 1/2 of your rent for submitting receipts for advertising up to that dollar amount to show that you are trying to create traffic, his philosophy is that if someone is trying to create traffic that it will encourage other business owners to rent space in his near empty enormous once thriving retail strip mall.
 
jscarl

jscarl

New Member
Don't forget to ask; who pays for parking area repairs, sidewalk up keep, heating and cooling repairs or replacement, water ,??? ect. Insurance coverage for fire or storm.???? Exterior painting or decoration. Lot to think about before you rush in.
 
briankb

briankb

Premium Subscriber
"triple net" Definition

A lease in which the lessee pays rent to the lessor, as well as all taxes, insurance, and maintenance expenses that arise from the use of the property.
 
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