Consider this a primer for anyone about to enter the commercial real estate scene, and particularly for those looking for a retail space for lease. We are RDS Real Estate, serving the Greater Fort Worth area, but what we are about to tell you is germane for all commercial real estate markets across the United States. Call us at 817-439-3224 for more information.
The determination of price
Retail space for rent is priced, in most cases, according to location and size of the commercial property for rent. Those two factors will set the price for retail lease space in most cities. It is the pricing system which was true fifty years ago, and it is the pricing system which will be true fifty years into the future. Let’s look at both in a bit more detail.
There are good locations for retail lease space, and there are bad locations. Put another way, there are very active areas in any city, where commerce flows along with consumer cash, and there are sections of the city which is dying on the vine.
Logically, retail space for lease in vibrant, active, healthy sections of the city will cost more than retail lease space in dying sections of that city. This is all part of the economic monster called Supply and Demand. If an area is highly-sought after, that demand will drive prices up. If an area is avoided like the plague by most rational-thinking people, the prices will dive so low as to seem irrelevant to any sane business owner.
Coupled with that is the issue of size. The more square footage a retail property has, the higher the price. This is a general statement which does not always apply, but nine times out of ten, that is the Law of Pricing you are shackled with when looking for commercial property for rent. It is a simple formula, and it goes something like this: retail space in this neighborhood goes for $2 per square foot, or retail space in that neighborhood goes, on average, for $3.50 per square foot. Just multiply the price per square foot times the square footage and you will have the monthly lease price of that property.
The price per square foot for commercial property for lease is generally tied into the location. The better the location, the higher price per square foot.
Combine the two for Shangrila
If you can find a property, located in a great section of the city, at a below-market price, you will have found Nirvana in commercial real estate. And we have such a property currently on the market, located in the Fort Worth Design District, in the Alliance Area of North Fort Worth, the fastest growing commercial area in Tarrant County. There you can find a retail space for lease for $875 per month, and that is a price so low as to seem like a misprint. Location plus low price means an opportunity business owners would be silly to pass up.
A word about RDS Real Estate
RDS Real Estate is locally owned and operated, and the leasing firm for the Fort Worth Design District. Within the District are Box Office Warehouse Suites, Paddock Place Office Suites, and the Golden Triangle Business Park. If you are looking for the best values in Fort Worth commercial and industrial real estate, call us and arrange for a tour of the Fort Worth Design District.