Retail Rent Per Square Foot Rechner — Formel

Retail Rent Analysis

For retail tenants, the critical question is whether the rent is supportable by the expected sales volume. The occupancy cost ratio is the key metric.

Occupancy Cost Ratio

Occupancy Cost Ratio = Total Occupancy Cost / Annual Sales x 100

Total occupancy cost includes base rent, NNN charges, percentage rent (if applicable), and sometimes merchant association dues.

Target Ratios by Retail Type

  • Grocery/Supermarket: 2-4%
  • Restaurant: 6-10%
  • General retail: 8-12%
  • Specialty/Boutique: 10-15%
  • Service businesses: 12-18%

    • Sales Per Square Foot

    This metric allows comparison across different-sized spaces:

  • Strong retail: $300-$600 per sq ft
  • Average retail: $150-$300 per sq ft
  • Struggling retail: Under $150 per sq ft

    • Lösungsbeispiel

    $84,000 annual rent for 2,500 sq ft, $18,000 NNN charges, targeting 10% occupancy cost, with $800,000 projected sales.

    1. Base rent per sq ft: $84,000 / 2,500 = $33.60
    2. Total occupancy cost: $84,000 + $18,000 = $102,000
    3. Occupancy cost per sq ft: $102,000 / 2,500 = $40.80
    4. Actual occupancy ratio: $102,000 / $800,000 = 12.8%
    5. Sales needed for 10% target: $102,000 / 10% = $1,020,000
    6. Sales per sq ft: $800,000 / 2,500 = $320