We're in the planning stages for the opening of a co-share space. I was wondering what percentage of projected gross revenue should be devoted to rent. A "traditional" or "standard" percentage for commercial leases is 10% of projected gross revenue, but I think that's really low for a co-share business which isn't overhead intensive like a retailer or service provider, e.g., software developer. I'm looking at leasing 3,000 square feet, which in my target area runs around $20/square foot. This translates to about $5,000 in monthly rent. Using the "traditional" figure of 10% of gross revenues be devoted to rent, I'd have to generate $50,000/month in revenue, an unrealistic figure. We want this venture to be a profitable enterprise so that I could make a living running the space at some point. So keeping this in mind, I would greatly appreciate it if someone could please provide a realistic percentage of rent to projected gross revenue that I should use in drawing up my business plan. And by they way, I'd love to see any a sample/template business plans you recommend or would care to forward of your own (redacting any confidential information of course). Thanks!
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