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Generally from $125/sq ft for small pet shop to 1,400 sq/ft for the big warehouse stores. The ratio of rent to sales is called "Occupancy Cost". Its range is large because different categories of "retail" can support different levels of this OC. In general they will range from 4-15%
Retail speciality rent should not exceed 10% of gross sales. Project a realistic expectation of sales to establish a rent you can support. Calculate your base rent on this projection and allow for a 20% error on the down side. Keep in mind the lessor must cover costs and realize a gain on the investment, so new facilities may not be within range of what you can support. Depreciated older property may be the best option. If your business is characterized by growth, you may want to offer the lessor a percentage of the sales over the base amount to offset a lower rent.
Depends on the business but for most small business your total occupancy cost should never exceed 10% of total sales.
In retail ( outside a mall) I would think around 6 to 9% I would add my advertising cost to that for the real number . If your not in the mall, I like to think my business is a combination of expousere from rent and advertising.
1/3 rd payment goes to rent.
1.To calculate the fair market fair rent 2. To Calculate Y.P. for life interest 3. To Capitalize the rent using Y.P. for life interest.
Rent expense is considered an overhead cost, not a cost of sales since it does not directly relate to the merchandise you are selling. Any prepaid rent (such as at the beginning of the month) should receive a journal entry debit to an account called prepaid rent, and at the end of the month should be credited to rent expense. Hope this helps.
sales rent received commission received
Contribution margin per unit = Contribution margin / number of units of products Contribution margin ratio = Contribution margin / Net sales The formula is different for both situations because contribution margin per unit calculates the contribution margin for one unit of product while contribution margin ratio calculates the contribution margin for total overall sales as overall sales may be included different mix of products with diff rent fixed and variable costs that's why both of these are calculated separately
Monthly rent per square foot is total monthly rent divided by the square footage Monthly Rent Per Square Foot x 12 to Calculate Annual Rent Home Loan EMI Calculator by Dwarkaexpresswayhomes. Easy to understand online Housing Loan EMI Calculator that helps calculate the EMI required to pay for your dream home. Know EMIs here!
One may find retail space that is for rent from Loop Net, Re/Max, or Coldwell Banker. A commercial real estate agent will have access to all properties and can help narrow down the search.
10-15%