Located in the great community of Paya Lebar, Paya Lebar square retail rental services offers opportunities for those seeking a new space for their business. To learn more about becoming a mall tenant, fill out the online form and a leasing representative will contact you about suitable space options.
Leasing retail space is typically one of the biggest operating expenses for a small business. It takes careful planning, consideration, and budgeting to find a place that meets your needs and doesn’t too large a bite out of your budget. Below, we’ll walk you through 6 steps on how to find and lease retail space for your store.
Before you go out and scout potential locations for your business, you need to know what you can afford. This will help you narrow down your choices and prevent you from jumping on a place simply because it looks appealing. Remember, your lease amount will take big chunk out of your monthly budget so it’s important to stick to a figure you’re comfortable with.
The maximum percentage a business should allocate to their lease payment differs depending on the industry. However, the range is typically 3 % to 10 % of gross monthly sales. Ideally, you should spend no more than 10% of your monthly gross sales on your lease for all apartments types.
Factors that impact monthly lease payment
Although this list will vary from city to city, here are some of the main factors that influence retail leasing costs:
Location. High traffic and high visibility locations obviously increase the lease costs tremendously as they place your store in a prime place for high foot traffic.
Demand. If you’re eyeing a location that is convenient for shoppers – such as variety of other shops around the area, ample parking space, and other amenities – then prepare to pay high lease costs.
Condition of the Space. If a retail space is basically move-in ready, you are going to pay a lot more than you would for a similar size space that needs improvements/remodeling.
Length of Term. In general, the longer the lease term, the more bargaining/negotiating power you have. However, if you only have a 1 year lease agreement, you have much less bargaining power.
Incentives with the Space Being Leased. If the lease comes with incentives such as regular improvements, then this will add to the cost. Try to see if you can negotiate this and take care of the improvements yourself.
Competition for Space. In certain high growth cities, commercial space is at a premium. You are not the only potential tenant that the seller is considering, and someone else might make a higher offer to win the retail space you’re eyeing.
So the leases that you can use in retail premises will vary from site to site and location to location but there are some rental and lease condition alternatives that are quite common and may be useful in your managed or leased property.
Here are some lease alternatives that may be worth considering:
1. The ideal lease term should be considered in balance with the surrounding tenants in the tenant mix. You do not normally want leases expiring in close proximity at the same time unless there is a need for relocation or expansion strategies within the tenant mix).
2. You may want to do a lease with a flat or fixed rent lease. This rent will remain locked to a figure for the duration of the lease. This type of lease gives the tenant and the landlord some stability in the rental agreed and to be paid.
3. A percentage only type lease rental will be useful when the shopping centre has difficulties and the viability of the tenant is essential to prevent another vacancy. In this case the rental will be calculated as a fixed percentage of the gross monthly turnover. Normally the figure is calculated in arrears each month.
4. A lease with a low base rent plus a percentage rent payable monthly is a good strategy to use with a start-up tenant business or a shopping centre that is still to attract its true levels of trade. This lease process helps the tenant remain viable.
When you’re looking for a Paya Lebar square retail rental doing your research will make a huge difference to your success. Look at as properties as possible in your target area as well as competitive areas. This will let you get a good idea of the market, of the properties and their conditions and rents as well as facilities.