How to calculate storefront rent
Facade rent is one of the core costs in commercial real estate leasing. Reasonable calculation of rent can not only help tenants control operating costs, but also allow landlords to obtain stable income. The following are the calculation methods and related hot topics that have been hotly discussed on the Internet in the past 10 days. They are analyzed in detail based on structured data.
1. The main calculation method of storefront rent
| Calculation method | Applicable scenarios | Calculation formula |
|---|---|---|
| Priced by area | Standardized shops and office buildings | Monthly rent = unit price (yuan/㎡/month) × rental area |
| Share according to turnover | Shopping malls, shopping malls | Monthly rent = turnover × share ratio (usually 5%-15%) |
| Fixed rent + share | Catering, retail industry | Monthly rent = basic rent + (turnover - threshold) × sharing ratio |
2. Six core factors affecting rent
| factors | Impact magnitude | Description |
|---|---|---|
| geographical location | ±30%-200% | Rents in core business districts can be more than three times that of suburban areas |
| flow of people | ±20%-150% | For every 1,000 additional people in daily traffic, the rent will rise by 15%-25% |
| Decoration conditions | ±10%-50% | The rent for a finely decorated shop is about 30% higher than that for a rough shop. |
| Lease period | ±5%-20% | 20% off for long-term rentals of more than 3 years |
| Industry type | ±15%-100% | Restaurant rents are usually 40% higher than general retail rents |
| Market supply and demand | ±10%-300% | The rent in the peak season can be 2-3 times that of the off-season. |
3. Reference for shop rents in typical cities in 2023
| city | Core business district (yuan/㎡/month) | Secondary business district (yuan/㎡/month) | Community shops (yuan/㎡/month) |
|---|---|---|---|
| Beijing | 800-1500 | 400-800 | 200-400 |
| Shanghai | 700-1300 | 350-700 | 180-350 |
| Guangzhou | 500-900 | 250-500 | 150-250 |
| Chengdu | 300-600 | 150-300 | 80-150 |
4. 3 Tips for Rent Negotiation
1.market research method: Collect rental data of similar shops within 3 kilometers of the surrounding area, and use comparative data to gain 5%-15% of the bargaining space.
2.long term lease law: Promising a 2-3 year lease term can be exchanged for a 10-10% discount, with an average annual rent saving of about 20,000 yuan (taking a 100㎡ shop as an example).
3.Decoration Subsidy Law: By accepting the decoration plan specified by the landlord, you can get a 1-3 month rent-free period, which is equivalent to reducing the annual rent by 8%-25%.
5. Latest industry trends
1. Under the impact of new retail, the vacancy rate of shops in first-tier cities reached 12.5% in Q3 2023, and some owners began to provide preferential conditions of "rent-free for the first three months".
2. The leasing demand of community group buying sites has surged, and the rent of small shops of 30-50㎡ has increased by 18% year-on-year, becoming a new investment hotspot.
3. The green shop certification (LEED) system has begun to affect rents, and the rent premium for certified shops can reach 15%-20%.
Through the above structured data analysis, it can be seen that the calculation of storefront rent requires comprehensive consideration of multiple factors. It is recommended that tenants conduct market research before signing a contract, use negotiation skills to obtain the best terms, and pay attention to new industry trends to gain a competitive advantage.
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