Retail leasing FAQ1: How much rent should I be paying?

Is your occupancy cost right for your business? What is your current occupancy cost ratio?

• A landlord will want you to pay what they have in their budget for that shop which is often based on ‘historical’ rents achieved, or what they feel they could lease the tenancy for
• The amount of rent you agree to should be based on what your business can afford irrespective of what the ‘market rent’ may be
• As a general rule of thumb across various retail categories, we try to keep occupancy costs below 10% of total turnover