oh, I totally misread Alison's email - sorry. I meant 50% of operating expenses. And yes, I agree w/ Alex: rent can be as low as 30% of the revenue.
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 1:43 PM, Alex Hillman <[email protected]> wrote: > I can confirm that revenues from membership that put rent at 30% of gross or > lower are absolutely achievable. > > We're playing catchup from our expansion this year so we'll close out with > annual revenue that puts rent closer to 45%, but we pay around the same cost > per square foot and have historically have optimized to get rent below 30% of > revenue. > > -Alex > > -- > /ah > indyhall.org > coworking in philadelphia > pre-order my new eBook, "the business of community" > > On Dec 12, 2012, at 4:26 PM, Jerome Chang <[email protected]> wrote: > >> 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. >> >> > > > -- > 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.
