Price for Retail Space
Tue Jul 07, 2009 01:51 PM
I was wondering what the average rent rate was for your retail space? Of course different areas of the country has some very different rent rates. What is included in your CAM charges? Besides the regular building, grounds, and parking lot maintenance; and taxes; water is included. We pay for our own electric, gas heating, phone and internet services.
Three years ago when I opened I signed at $14/sq ft with a 3% increase per year for a 5 year lease. I was trying to get the same space that Ink Stop now has; they wanted $21/sq ft. I was trying to get them down in price when Ink Stop came in and agreed to pay full price.
Ink Stop does not do much B2B, so they really depend on location, location, location… We have about 60% B2B, and have more sales then Ink Stop does in cartridges. But they do have all of those other supplies and accessories.
I looked into getting a space in the retail district of our city, but they wanted $30 or more per sq ft. I worked in a CW store for 6 months before I signed for our store’s location. I realized then that it is probably better to rent a cheaper location and focus on B2B sales; or at least to start out that way. Maybe after this store is performing well enough, then we might tackle a space with a better location…