How Much Should I Be Paying In Rent? - BDC
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21 Jun How Much Should I Be Paying In Rent?

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First and foremost every retailer should know their products and or services better than anyone else, which is the corner stone to their business. The next major issue to deal with is getting the correct rent for their business. It is so important to have the right occupancy rate and this is where most retailers fall short. Every category in the retail portfolio can sustain a certain occupancy rate and in today’s market there are too many retailers both nationals and mums & dads who are falling over because they don’t understand the property component of their business.

It’s not rocket science, if your business needs to run on 10-15% occupancy cost then you need to negotiate a deal within that range. How to work out the occupancy for your business – if your annual sales are $600,000 and you need to be no more than 15% occupancy then your business needs to pay no more than $90,000 gross rent. One more thing is the description  of gross rent – gross rent is the full rent you will pay over the period of 12 months. That includes base rent, outgoings and marketing levy. Keep in mind that in Victoria you need to add in rates & taxes.


Paul Edwards has over 8 years’ experience in the retail leasing industry delivering some of Australia’s national retailers with professional service and results. He has worked with national retailers like Specialty Fashion Group, Homeart and Michelle’s Patisserie along with small retailers looking to grow. He enjoys working with clients to achieve realistic occupancy rates and growth.

 

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