I can confirm that revenues from membership that put rent at 30% of gross or lower are absolutely achievable.
We're playing catchup from our expansion this year so we'll close out with annual revenue that puts rent closer to 45%, but we pay around the same cost per square foot and have historically have optimized to get rent below 30% of revenue. -Alex -- /ah indyhall.org coworking in philadelphia pre-order my new eBook, "the business of community" On Dec 12, 2012, at 4:26 PM, Jerome Chang <jer...@blankspaces.com> wrote: > You could go as high as 50%, but 30-40% is quite common as well. Totally > depends upon if parking is included, if your rent is full service gross > (FSG), modified, NNN, etc. > > Question: if "co-share", what other usage or tenant will share this space? > > > Jerome > ______________ > BLANKSPACES > "work FOR yourself, not BY yourself" > > www.blankspaces.com > 5405 Wilshire Blvd (2 blocks west of La Brea) Los Angeles, CA 90036 > 323.330.9505 (office) > > On Dec 12, 2012, at 1:22 PM, Alison Baker <21beachpl...@gmail.com> wrote: > >> We're in the planning stages for the opening of a co-share space. I was >> wondering what percentage of projected gross revenue should be devoted to >> rent. A "traditional" or "standard" percentage for commercial leases is 10% >> of projected gross revenue, but I think that's really low for a co-share >> business which isn't overhead intensive like a retailer or service provider, >> e.g., software developer. I'm looking at leasing 3,000 square feet, which in >> my target area runs around $20/square foot. This translates to about $5,000 >> in monthly rent. Using the "traditional" figure of 10% of gross revenues be >> devoted to rent, I'd have to generate $50,000/month in revenue, an >> unrealistic figure. We want this venture to be a profitable enterprise so >> that I could make a living running the space at some point. So keeping this >> in mind, I would greatly appreciate it if someone could please provide a >> realistic percentage of rent to projected gross revenue that I should use in >> drawing up my business plan. And by they way, I'd love to see any a >> sample/template business plans you recommend or would care to forward of >> your own (redacting any confidential information of course). Thanks! >> >> >> -- >> Visit this forum on the web at http://discuss.coworking.com >> --- >> You received this message because you are subscribed to the Google Groups >> "Coworking" group. >> For more options, visit https://groups.google.com/groups/opt_out. >> >> > > > -- > Visit this forum on the web at http://discuss.coworking.com > --- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > For more options, visit https://groups.google.com/groups/opt_out. > > -- Visit this forum on the web at http://discuss.coworking.com --- You received this message because you are subscribed to the Google Groups "Coworking" group. For more options, visit https://groups.google.com/groups/opt_out.
