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02-02-2004, 10:20 AM
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#1 (permalink) |
 Join Date: Jan 17 2004
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I am trying to lease a space 1200 SF total I have a design layout for 4 booths I bed and a airbrush unit. I also plan to sell swimwear. I would appreciate any opinions you may have on the rent amount of $3,600. It is an upscale unit in a beautiful shopping area. My fear is the rent is so high I may spend my time just paying rent. I realize this is a broad question. Any thoughts.
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02-02-2004, 10:30 AM
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#2 (permalink) |
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I love Derf!!
 
Join Date: Mar 12 2002
Location: Virtual Reality
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Your instincts are correct. $36.00 per sq ft is too much.
Also, you can do alot more in 1200 sq ft. Tanning booths are estimated 10%-15% of the market and 80% of your mix. I suggest you work on your business plan. |
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02-02-2004, 11:09 AM
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#3 (permalink) |
 Join Date: Jun 8 2003
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I'm not sure where you are in the USA but $3600.00 for 1200 SF is high! You'll never survive with 4 beds and rent that high! If I were you I would continue to look around for a lower priced location. If you take what many here have stated in past, the most you could generate in a 4 bed salon is $60,000.00 gross. That’s $15,000.00 per unit. How accurate that is will vary depending on each location. Then you take $43,200.00 right off the top for rent and you see you'll only have $16,800.00 left for electric, phone, insurance, and salary. Not good at all! I live in a area where the cost of living is up there but I’ve never heard of rent at $36.00 per Sq. Ft. before.
Just as Ezliving_Jim said above. You need a business plan! |
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02-02-2004, 12:29 PM
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#4 (permalink) |
Join Date: Jan 12 2004
Location: 1334 Main St. Crete Il. 60417
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It's not $36.00 it's $3.00 per sq. foot and still, Holy cow that is alot! You could probably buy a building for less. I am in a south suburb near Chicago and we are 1/3 of that. I know in a high income are you can charge more but are you going to charge 3 times as much? Good luck.
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02-02-2004, 12:44 PM
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#5 (permalink) |
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Join Date: Jun 8 2003
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Quote:
On 2004-02-02 12:29, staticHnTLounge wrote: It's not $36.00 it's $3.00 per sq. foot and still, Holy cow that is alot! You could probably buy a building for less. I am in a south suburb near Chicago and we are 1/3 of that. I know in a high income are you can charge more but are you going to charge 3 times as much? Good luck. How did you get $3.00 per sq. ft. out of the above post? |
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02-02-2004, 12:55 PM
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#9 (permalink) |
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Join Date: Jun 8 2003
Posts: 302
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Square footage is calculated by the year in most cases. $36.00 per sq. ft. X 1200 = $43,200.00 / 12 = $3600.00 per month.
$3.00 is correct if you calculate the price per sq. ft. per month. Just a different way of looking at it I guess. |
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