who here has experience with leasing some retail space?

[JasonSnake]

So a new plaza opened up less than a mile from where I live and there's a bunch of vacant spaces there.

I've been thinking lately about leasing one of the smaller spaces to use as a computer repair shop. I think there would be some good traffic there because a Fresh Market grocery story just opened about a week ago. Plus, the plaza is in one of the most busiest intersections.

I've never leased retail space before and want to know what I will be getting myself into, as well as potential monthly leasing costs to run the store with just me and maybe another person I may hire.

*edit - I meant computer repair shop

 

[65fastback2+2]

how much space are you looking for?

 

[JasonSnake]

Just a small enough space for repairing customer computers. One of the spaces I saw actually had a partition separating the front and work space in the rear which looks like a perfect arrangement. I would have a couple of work benches in the back. I would guesstimate I'd need around 700 sq-ft more or less.

 

[65fastback2+2]

Depending on the managing company, it can vary but mostly it will be run like an industrial type property. That is you pay them for the space and they provide upkeep on common areas (parking lots). You pay directly for everything else.

Depending on location, it is pretty easy to expect $10-20 sq. ft. I would expect it to be a modified gross lease type (again, varies by owner and managing company).

So, you're looking at $1200 a month on the high end + CAM (common area maintenance) + Utilities + Other Requirements (build out, insurance, etc.). This is just a rough guesstimate using typical numbers not knowing the location or anything.

 

[blwn306]

Never I mean never pay for a buildout! Do research on the property owner and see how they operate and are leiniate when late. As a new business you are most likely gonna be late shit happens. If they can screw you they will it's a harsh world when renting retail. So see who you are dealing with first. We never pay over 1.00 and see if they will do 6mnths just in case it doesn't work out. Check with county laws for sign permits if the owner pays it or you, if you need a CFO again if owner pays that as well

 

[blwn306]

For 2800 sq ft of new retail building didn't pay for build out I'm paying 2200 a month build to spec.

 

[65fastback2+2]

Never I mean never pay for a buildout!

Youre going to pay one way or another...either in the buildout or in the per sq. ft. rate. No one is going to pay any TI for a 6 month cancellation clause lease either.

 

[03 DSG Snake]

I don't think you will see much walk in traffic for that type of business. My suggestion would be to start as a home business first, and use word of mouth and social media to get your name out there before wasting the money on occupying physical space.

I analyze Commercial RE all day long. Just my $0.02.

 

[04SVT_COBRA]

I don't think you will see much walk in traffic for that type of business. My suggestion would be to start as a home business first, and use word of mouth and social media to get your name out there before wasting the money on occupying physical space.

I analyze Commercial RE all day long. Just my $0.02.

+1

I would think most people are either going to go straight to Best Buy or a more reputable company, or they are going to just get a new computer. Craigslist would be just as effective, if not more, in getting new customers than a brick-and-mortar shop would be. The only exception would be if you possibly sold accessories or something that other people in your area don't carry.

 

[WHITESVTCOBRA]

+1 most places have multi-year contracts which if your business idea fails will leave you stuck for several years paying that rent. Just contact the leasing agent and see what they have to offer. As stated above start from home first.

 

[CobraBob]

I don't think you will see much walk in traffic for that type of business. My suggestion would be to start as a home business first, and use word of mouth and social media to get your name out there before wasting the money on occupying physical space.

I analyze Commercial RE all day long. Just my $0.02.

Very good advice, Ron. I would bet that within the computer repair sector, a home start-up would be very common. That would eliminate a big expense early on for a new start-up company. But check on your local zoning regs. Some are pretty tough on businesses operating within a residential area.

 

[65fastback2+2]

+1 most places have multi-year contracts which if your business idea fails will leave you stuck for several years paying that rent. Just contact the leasing agent and see what they have to offer. As stated above start from home first.

You can always sub-lease it, and sometimes do so at a profit.