Hot Tub Forum
Original => Hot Tub Forum => Topic started by: AmICrazy on December 22, 2004, 02:24:26 pm
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Just looking up lease rates at various locations and was wondering what everybody on average is paying for great locations. I get the out of the way spots that have no visibilty but how about prime or close to it. Rates here in Canada often include your municipal services, insurance and taxes and common fees ie snowplowing lawncare etc. Rates for prime here are around $17-24/ sq ft total. How does that compare to US prices? In Canada they seem to vary greatly forom city to city as well. Just wondering ....
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In our area it goes anywhere from $15 to $25 with CAM/Triple net costs.
I have almost a 15,000 sq ft facility and I know that I have about a $25,000 per month nut to crack at the lowest.
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Wow! I thought I was doing bad when our landlord tried to jack us up to three bucks a foot !!
I'm in the midst of signing a new lease for Fifty CENTS per foot - but I would hardly call it "PRIME."
I'm going to move to an industrial building that faces the freeeway = lots of visibility but a fraction of the rent.
I'll spend three or four month's of rent for Stuart just to get the place up to snuff - though AirConditioning will have to wait till next year.
I will then have just under 8000 square feet, but part of it will be set aside for warehouse.
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65 cents!!! What the heck is that!? Never heard of such a low price there must be something or lots of things not included in a quote like that. It cetainly make your profit quite a bit higher than most owners. I'd expect great deals coming out of a store with that kind of rent!!!
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65 cents!!! What the heck is that!? Never heard of such a low price there must be something or lots of things not included in a quote like that. It cetainly make your profit quite a bit higher than most owners. I'd expect great deals coming out of a store with that kind of rent!!!
Chas might be doing the math differant than we do, how I do it is let's say I have 10,000 sq ft, math would be as follows 10000 x 20= 200,000 divide that by 12 months and you wind up paying 16,600 per month.
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Our Newbury Park store was just over 4500 square feet. At $3 per foot (including triple net) I wrote a check for $13,500 per month for rent.
Our new 7200 square foot building will be $3600 per month net. I was wrong with the .65 figure, it's only half a buck. I forgot that they had asked $.65 and accepted my counter-offer of $.50 - wow, is THAT going to get me into trouble with the price-grinder folks...
But - That doesn't include electric, but does cover water and garbage (one large dumpster to share with the "Boot Barn" on the other end of the building. I will spend an extra five to ten thousand dollars per month to help people find our new location, but after the traffic returns to normal - and hopefully increases.... we will scale that back.
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The way they figure $ per sq. ft here that would be around $36 a sq ft for the old rent.
Your new store would be about $6, that's an incredible deal for CA! You want to negotiate for me on my new store across town? ;)
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In our area it goes anywhere from $15 to $25 with CAM/Triple net costs.
I have almost a 15,000 sq ft facility and I know that I have about a $25,000 per month nut to crack at the lowest.
What area are you in Stuart?
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PHEW,
I was starting to get confused reading Stuart's and Chas' lease rates until I realized that Chas was quoting $/square foot/month and Stuart was calculating $/square foot/year
$3/sq.ft./month = $36/sq.ft./year
It is all coming clear to me now ;D
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Why does everybody rent when you can buy a building with a mortgage for probably the same amount that you are paying in rent. Then you actually have an asset and in 15 years you don’t have to pay rent. Wanna know when you really start making money, it is when you don’t have to pay $10,000 a month in rent.
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And I forgot to mention that a mortgage never really goes up.
It actually will go down every year if you consider inflation. You can also refinance the mortgage after a certain amount of years then the payments will be reduced even further.
I am a proponent of purchasing rather than leasing.
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We have a pretty good situation where we are.
My showroom is 1,500 sq. ft. and includes a separate mood room with a Sovereign and Envoy. I have room on the floor for 6 additional spas and keep 2 of those wet. We pay $1,500/ month for this.
The best part is that the landlord let us build a 1,500 sq. ft. multi-level deck adjacent to our store with no additonal rent. It sits on top of a hill between Best Buy and Circuit City and overlooks Oak Forest Country Club and the main loop through town. I keep five more spas (the big ones) wet and ready on the deck.
CEO
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We have a pretty good situation where we are.
My showroom is 1,500 sq. ft. and includes a separate mood room with a Sovereign and Envoy. I have room on the floor for 6 additional spas and keep 2 of those wet. We pay $1,500/ month for this.
The best part is that the landlord let us build a 1,500 sq. ft. multi-level deck adjacent to our store with no additonal rent. It sits on top of a hill between Best Buy and Circuit City and overlooks Oak Forest Country Club and the main loop through town. I keep five more spas (the big ones) wet and ready on the deck.
CEO
We are actually building a 1500 to 2000 square foot outdoor living environment in the front of our stroe this spring! This will add nothing to our rent!
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And I forgot to mention that a mortgage never really goes up.
It actually will go down every year if you consider inflation. You can also refinance the mortgage after a certain amount of years then the payments will be reduced even further.
I am a proponent of purchasing rather than leasing.
We are trying desperately to buy a building. The one we came the closest on is priced at $1.8 million and comes with a vacant lot next to it which is already 'buildable.' I offered $1.5 and they didn't even respond. But it has been on the market awhile, so we may go in and offer yet again. It has better freeway vis than the place we are signing the lease on, and is ready to go: AC, carpet and lighting is just about the way we like it. Also a large fenced area in the rear where we could put up a patio roof type of structure and store spas. We have wanted to buy forever, and it just hasn't happened. Yet.
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We are actually building a 1500 to 2000 square foot outdoor living environment in the front of our stroe this spring! This will add nothing to our rent!
You should really get a lot of mileage out of it!
We've got the palm trees, gazebo, lighting, etc. We also have gas lines run to install an outdoor kitchen and fire pit. Right now, it's decorated for Christmas.
CEO