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  • #979078
    soulclothing
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    Hi there,

    I have been operating as a partnership since July 2011 selling women’s fashion online. We want to take the next step and open a retail store within a shopping centre in Sydney. I have a few questions I thought the flying solo community might be able to answer.

    How much is a ballpark figure for a commercial lease within a shopping centre? Yes I understand it depends on location, how big the space is and etc. However I want to know should I be expecting for example over 3k a week? I have tried to contact a few leasing managers at shopping centres but they will not disclose this information until they are able to provide me with a draft lease.

    We will not be operating our store under the partnership, instead we want to open our store under a company structure, we were thinking of PTY LTD, can anyone explain or give further insight to what they think of this? We were thinking of opening it as a company due to the limited liability and tax %. Yes I understand I should be asking an accountant for this advice, however our accountant (a friend who gives us free advice) has actually travelled overseas at the moment and won’t be back for a few months.

    Any other useful tips would be appreciated.

    Thanks

    #1111799
    Chris – Marketing
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    Hi exciting times ahead.
    When it comes to a lease in a major shopping complex the weekly $$$ (They get their m2 without a problem) are of less importance to the Lease Provider. The conditions are where businesses fail to scrutinize. Trading hours means u must provide adequate staffing for the extra hours. Late night trading, xmas trading hours, weekends and special promos. Not budgeting for this will hurt badly. Also pay particular attention to strict criteria for fit outs and an expectation that u will refurbish your retail outlet every 5 yrs ….Budget for this.
    There are number of specific conditions in every clause, know them, understand them and get into bed with your solicitor before you sign.

    Chris Poulios
    http://www.satisfaction-marketing.com.au

    #1111800
    TheGoldenGoose
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    Absolutely exciting times, I have no knowledge of commercial lease prices but just wanted to wish you all the luck in the world, and a congratulations for getting this far! :)

    #1111801
    SalenaKnight
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    yes, absolutely look at the ‘extras’, like the security payments, the cleaning fees, the complete refit every 3/5 years (and loss of trade for the 3-4 weeks whilst this is getting done), trading hours etc.

    Again, it turly depends on WHERE, and where within the centre the shop is (there are premium loadinggs for being near major stores).

    An example – our local shopping (major) centre, a shop in a very good area (but not premium) was $21k per month. I would estimate the floor space was about 50sqm. That’s ALOT of turnover!

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