Today, I had a telephone call from a young lady who asked "how much would it cost to lease a space".
On the face of it, that should be an easy answer.
WRONG
Here is what I asked her:
1. What type of business do you plan to have?
Answer: She said a "bakery".
2. Then you need permits from the City or County to open a restaurant.
Answer: Ok, she said. how much would that be?
3. That would depend on your location. The easiest would be to take over an existing bakery, and its lease.
Answer: Ok, yes, and how much would that cost?
4. Well, then you would actually buy someone else's business, plus lease the premises from their landlord. And both would depend on location and the success of the current business.
ANSWER: BUT I JUST WANT TO OPEN A "START-UP" BAKERY, I JUST WANT TO KNOW WHAT THAT COSTS. CAN'T YOU GIVE ME A BALL PARK FIGURE?
MY ANSWER: NO I CAN'T!
5. Because if you start your business from scratch, you still need to find a location suitable for a bakery, get new permits approved by that city and that would comply with all the laws of a restaurant in that city. Then you need all the equipment to outfit the bakery. Another question would be, do you plan to do your own baking on the premises? That would be a whole different set of rules and regulations.
It is not like leasing an office where the rent might be $2.50/square foot, for example!
Turns out, she is a student at a nearby college and this was a class project.
THERE IS NO "ONE SIZE FITS ALL" ANSWER WHEN IT COMES TO COMMERCIAL REAL ESTATE.
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