You could go as high as 50%, but 30-40% is quite common as well. Totally depends upon if parking is included, if your rent is full service gross (FSG), modified, NNN, etc.
Question: if "co-share", what other usage or tenant will share this space? Jerome ______________ BLANKSPACES "work FOR yourself, not BY yourself" www.blankspaces.com 5405 Wilshire Blvd (2 blocks west of La Brea) Los Angeles, CA 90036 323.330.9505 (office) On Dec 12, 2012, at 1:22 PM, Alison Baker <[email protected]> wrote: > 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! > > > -- > Visit this forum on the web at http://discuss.coworking.com > --- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > For more options, visit https://groups.google.com/groups/opt_out. > > -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. For more options, visit https://groups.google.com/groups/opt_out.
