Is Your Rent-to-Revenue Ratio on Spot for Your Business?

When looking at financial analytics for occupying commercial real estate, most tenants and business owners will be focused on the following: monthly rental obligations, total lease commitments, rate escalations and landlord expense pass-through’s to the tenant. These numbers can be broken down into either “cost per SF” or “cost per employee” ratios for analysis and comparison. But what tenants and company leaders should also be interested in for their bottom line analysis is their industry rent/revenue ratio. Similar to the rent/sales metric used by retailers and shop owners to calculate the feasibility of a location based on sales needs, the rent/revenue ratio is a great way for other busi

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Thomas Kenna

 

Principal: Occupier Solutions

Mobile: 919 830 0510

Office: 919 913 1119

Thomas.Kenna@avisonyoung.com

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