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What is the average rent per square foot for a restaurant?
To help you, we have filtered the responses and prepared summary reports for the following areas:
| Survey Summary – All Respondents | ||
|---|---|---|
| Base Rent | Lower Quartile | Average |
| Square footage of restaurant | 2,100 | 4,180 |
| Base rent per sq. ft. – monthly | $1.00 | $1.95 |
| Base rent per sq. ft. – annual | $12.00 | $23.39 |
How much should a restaurant pay for rent?
In most cases, the industry’s collective experience shows that the lease cost should total no more than 5 to 8 percent of the restaurant’s total revenues. On that basis, a neighborhood restaurant with $800,000 in sales should expect to pay $40,000 to $64,000 a year.
What is a good occupancy rate for a restaurant?
The general rule of thumb is your total occupancy cost (rent and additional fees for property taxes, insurances, etc.) should not exceed 6-10% of your gross sales. The numbers that are right for your business may be lower or higher depending on other factors.
How do you calculate restaurant rent?
Multiply your projected annual sales by the suggested occupancy cost percentages. Based on your projected sales your rent range is $5,000.00-$8,333.33 per month. Rents are quoted either monthly or annually depending on location.
What is a good rent to sales ratio?
For a tenant, the rent-to-sales ratio helps them decide if a location makes economic sense for their business. In retail, tenants aim for a rate below ten percent, ideally operating between a six to eight percent rent-to-sales.
How is industrial rent calculated?
How to Calculate Commercial Rent:
- Take Your Price Per Square Foot.
- Multiply That by Your Total Square Footage.
- That Gives You Your Total Annual Rent.
- Divide by Twelve for Monthly Rent.
How much does it cost to rent space for a restaurant?
If your budget is $6,000 per month for a 2,000 square foot space ($3.00 per square foot per month), it does not make sense to look for space in a neighborhood where restaurant rents average $10.00 per square foot. Now that you have determined your maximum rent, you have a starting point to determine which neighborhoods fall within your budget.
How do you calculate monthly rent for a restaurant?
To determine monthly rent: Multiply the size of the restaurant by the rent per square foot for rents quoted monthly. 2,000 sf X $3.00 per square foot/month=$6,000.00
What is the average rent per square foot for industrial space?
Special purpose industrial space commanded a higher rent per square foot than warehouse or manufacturing space in the United States in the third quarter of 2019. The average rent for special purpose industrial space was 9.49 U.S. dollars per square foot in that quarter.
How do you calculate rent per square foot for commercial property?
If your commercial space is 3,000 square feet, here’s how to calculate your rent: Price Per Square Foot x Total Square Feet = Total Annual Rental Rate For example: $32.00 / sq. ft. x 3,000 sq. ft. = $96,000 per year Divide that by twelve for your monthly rental rate of $8,000.