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How shopping malls price retail space

How shopping malls price retail space

There is always a need of knowing what you are facing before you are asked to give a particular amount of money. When looking for space, the investors must plan and know which place fits their plans if the budget. It’s similar to a person who wants to rent a house because they must first know how much it costs, and they will see if they can afford that cash. They will first confirm whether the place fits their choice and preference too. Shopping malls too must do their research first, and get figures of payment from owners or the managers of the companies.

If you have plans of starting

If you have plans of starting a retail store or mall, you first look out for all the retail rents present in the place you want to set your store. That means you know those that charge high or low so that you can decide a good price before starting. The first step is doing your research through comparison, and that is with the unoccupied properties present in the area. Check on how they charge, and how they determine the cost you pay for a particular store. Most of them have a set price for every square foot, and with that, you can calculate the cost within a given period like a month or a year.

How shopping malls price retail space

Different stores charge differently which is dependent on their size and where they are located. A stand-alone building can be expensive since there is no competition compared to that which is built near or close to other stores. Taking into consideration the lease terms is also important when setting your price. There are owners who will let you know their charges of doing business as part of the lease agreement. Charges are common that are an addition to the rent you pay every month, and are categories in three types. There is fee charged for maintenance of the common area. That is usually the cost the landlord incurs to maintain the packing area, and lighting for the area you are in.

Another charge that the owner passes is the price of property charged as tax for space. When you build stores that others will use to store their goods, there are taxes that must be charged. That is because the government intervenes to make sure anything stored there is legal. Those are the charges that the owner will pass to you so that he is able to manage the expenses of the stores. Insurance premium is the other charge that you will be asked to pay for your space by the owner of the store.

The insurance premium is for protection of your property that is in your area. There is insurance that the owner of the space takes to so that he prevents himself from damage that may happen to his property in the process of leasing. Shopping malls must take these in to consideration before they can set price of space to retailers. That helps them know where to set the cost, and why they ask you to pay a particular price, and not another.