Retail is the largest private sector employee in the U.S. In Maryland, there are 68,283 retail establishments and 755,679 jobs supported by retail (National Retail Federation). For new retailers, it can be challenging to evaluate and predict start up costs. One of your biggest initial expenses will be leasing a retail space. Here are some tips on how to budget for a retail space in Maryland.
To get an idea of the price range you will be looking at for your retail space, research vacant properties that fit your business needs. Write down all retail spaces that spark your interest so that you can plan to visit them.
When you write them down, also jot down the leasing price. Once you have a list of potential retail spaces, you can calculate the average price and use this to create a budget for your space.
Most listings will post the price per square foot. If a building is $20 per square foot and is 1500 square feet, you are looking at about $2500 per month for rent. It’s always a good idea to budget in advance so that you can have a few months rent set aside along with other business expenses.
Often times, when leasing a retail space in Maryland, landlords will also give you the responsibility of handling costs of doing business. You want to carefully review the leasing terms of the retail space you are interested in so that you are aware of any additional costs.
The three most common charges that can be added to your base rent are:
A lease that requires you to pay all three of these costs in addition to rent is referred to as a “triple net” lease. You want to be very thorough when reading through lease conditions because you don’t want to unknowingly sign a lease that requires you to pay all of these fees.
Carefully reviewing and analyzing lease terms can assist you in planning an effective budget for your retail space.
Want to find an ideal location for your growing Maryland company? At Newspace Commercial, we fully represent the tenant looking to find the perfect commercial space.
Born from AJ Properties, an Anne Arundel County based commercial real estate firm, Newspace Commercial is designed to focus solely on Tenant Representation services, ensuring that you find your perfect business space, avoid mistakes, and negotiate the best deal.
For more information, visit our website www.newspacecommercial.com. To contact us, give us a call at (410)-218-1372!