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31 Replies Last post: Jun 6, 2008 10:18 AM by heretohelp

Lease a space

Apr 18, 2008 11:40 PM

Click to view S.Scrubs's profile Professional S.Scrubs 4 posts since
Apr 18, 2008
I am very new at this small business venture and would appreciate some advice. I am in the planning stage to start a small business. I inquired about a space to lease to open up a retail medical uniform store. The space is 3580 sq ft and the gross monthly lease is $8200.00. Is this a reasonable price for a place that is developing in a fast growing small city? What does "gross monthly" lease mean? Does it include utilities and are business leases negotiable or is the price set? I do not have a business realtor to ask these question and I'd appreciate some advice from the "pros." Thanks.
Tags: money, for, growth Report as inappropriate
Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
1. Re: Lease a space Apr 19, 2008 2:47 AM
in response to: S.Scrubs

Yes, a gross monthly lease commonly means the rent, taxes, maintenance, cleaning, and utilities are included. Without knowing exactly where the property is located and the class of space it is, it's impossible to say if that's a reasonable price or not. In many small cities, you wouldn't find anything that expensive -- yet in some of the fast growing upscale communities that surround metro areas, it would be reasonable. My suggestion would be to browse some of your local commercial realtors' websites for properties in the same area and compare.

Hope this helps. Welcome to the community and best wishes.
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
2. Re: Lease a space Apr 19, 2008 8:51 AM
in response to: S.Scrubs
Lease a space, welcome to this web site and good luck.
If as you say you are in the planning stage of a new business, do you have
a Business and Marketing Plan??
Do you want to share where you are, (City and State) and what kind of business??
Do you know about SCORE?? SCORE is FREE and helps people in business.
LUCKIEST
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Click to view S.Scrubs's profile Professional S.Scrubs 4 posts since
Apr 18, 2008
3. Re: Lease a space Apr 20, 2008 7:34 PM
in response to: Lighthouse24
Thank you for the information. I will do some more research on surrounding areas for lease.
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Click to view S.Scrubs's profile Professional S.Scrubs 4 posts since
Apr 18, 2008
4. Re: Lease a space Apr 20, 2008 7:44 PM
in response to: S.Scrubs
LH24,

Thank you for the advice. I read a little about the SCORE on this BOA forum. I will be attending a small business seminar in May to learn more on how to get started. I have books to learn more about the business plan, but have not compose one, yet. Is there an expert who does it for a fee and how much?

The location that I am looking to open a business is in a small developing city called Rosenberg, TX about 15 minutes from an upscale city called Sugar Land, TX. I want to start a medical uniform store, but I am not sure what is a reasonable price in regards to leasing a space. I do not have a business degree, so I hope to learn as much as possible before I dive in! Thanks again for your help.

-S.Scrubs
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Click to view S.Scrubs's profile Professional S.Scrubs 4 posts since
Apr 18, 2008
5. Re: Lease a space Apr 21, 2008 12:06 AM
in response to: LUCKIEST
Luckiest,

Thank you for the info on SCORE. The previous post was meant for you. :-)

S.Scrubs
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Click to view textress's profile Professional textress 4 posts since
Apr 20, 2008
6. Re: Lease a space Apr 20, 2008 11:23 PM
in response to: S.Scrubs
Sounds expensive to me. Is it a brand new state of the art complex? I am in CA and have a corner space about the same size as you are looking at . All included it cost me a little over $4k a month. My space is at the junction of two major intersections in a large city. Now, I dont have all your details, but I am in Bay Area ,CA and paying this.
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Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
7. Re: Lease a space Apr 21, 2008 12:55 AM
in response to: S.Scrubs

If I'm calculating correctly, that's $27.50/sf which seems to me like the upper threshold for that area. In my opinion, you should be getting everything you want for that price -- great facility and ideal location. If that's the case, I don't think anyone can say it's unreasonable (because I'm guessing that there aren't all that many "near perfect" commercial properties available there right now). On the other hand, what would do the most good for your cash flow and profit? If you leased a facility that was $17.50/sf instead, would the cheaper facility or less desirable location cost you more in operations and sales than the $36,000 you'd save in rent? If so, then it's another sign that the current offer is reasonable. If your profit picture could potentially be prettier with a less expensive lease, then maybe this deal isn't the right one.
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