business rent

Discussion in 'Growing and Managing a Business' started by smaughan, Feb 25, 2010.

  1. smaughan

    smaughan
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    Hi,
    I've come across the opportunity to open a coffee shop and lunch bar in a rural area in west yorkshire. It is a large 2 floor barn and is to be part of a complex including a garden centre and farm shop but how do you find out how much rent you should be paying? i know this is a very hard question to answer but should it be more in the hundreds a month or thousands a month or are you just subject to whatever the landlord decides?
    Any advice would be greatly appreciated.

    Thankyou
     
  2. seanstevens

    seanstevens
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    Get online and take a look at similar sites in the area at commercial estate agents, see how much the rents are, go and see a couple so you have something to compare against. Talk to the agents, if you get a good one they have loads of information to share on local conditions etc. For a commercial site like this one will come down to expected foot fall on a daily basis, so maybe worth spending a day there and seeing how many people come in and out of the area so you can guague your potential earnings. No point paying rent if you won't make the money back in takings.

    West Yorkshire - lovely place.
     
  3. bistones

    bistones
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  4. Fergal

    Fergal
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    Welcome to Business Advice Forum smaughan, Sean has already given you excellent advice and covered the most important things you need to be looking at. Real estate agents are operating in a very competitive market at the moment. If you phone a few of the local ones and tell them about the type of property you are looking at and how much it is going to cost you, they should be very keen and quick to tell you if they can find a better property for you.

    As Sean also said, you will need paying customers in order to pay your rent. It would be more difficult to operate a successful business from a property with a low rent and less passing trade than a property with more passing trade and a higher rent.

    Good luck with it and please keep us posted with your thoughts and questions.
     

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