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Know what expenses to expect when leasing retail space

The article talks about the various expenses you might have to incur other than your rent for retail space. These are some of the key expenses you will need to keep in mind whether you are leasing a place in your locality or at the Jumeirah shopping center, in Dubai. Accounting for all these expenses is the best way to plan for the future before leasing any property.<br>http://corporate.unioncoop.ae/en/business-opportunities/shops-leasing/

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Know what expenses to expect when leasing retail space

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  1. KNOW WHAT EXPENSES TO EXPECT WHEN LEASING RETAIL SPACE

  2. INTRODUCTION Leasing in retail real estate refers to the process of renting out commercial space to retailers or other businesses. Operating expenses refer to the ongoing costs associated with maintaining and operating a commercial property, such as property taxes, insurance, utilities, and repairs. In a retail lease, the landlord typically requires the tenant to pay a portion of the operating expenses in addition to the base rent. This is known as "additional rent" or "common area maintenance (CAM) charges." These charges are typically calculated as a percentage of the tenant's sales or as a fixed amount based on the requirement of store space for rent.

  3. SOME EXPENSES TO KEEP IN MIND WHILE LEASING A PROPERTY

  4. Base Rent: This is the primary cost of leasing retail space and is typically quoted on a per-square-foot basis. It is the amount of money the tenant pays to the landlord for the use of the space. • Common Area Maintenance (CAM) charges: These are additional expenses that the tenant must pay for the upkeep and maintenance of common areas in the shopping center, such as parking lots, sidewalks, and public restrooms. • Taxes: Property taxes are usually the responsibility of the landlord, but some leases may require the tenant to contribute a portion. • Insurance: The tenant is usually responsible for obtaining liability insurance and will often be required to provide proof of insurance to the landlord.

  5. Utilities: The tenant is typically responsible for paying for their own utilities, such as electricity, water, and gas. Some leases may require the tenant to pay a proportionate share of the costs for common area utilities. • Improvements/Build-out costs: Tenant may be required to pay for any improvements or build-out costs for the space, such as installing flooring, electrical, plumbing, painting, and so on. • Legal fees: Tenant may be required to pay legal fees associated with drafting and executing the lease agreement. • Advertising and promotional expenses: Some leases may require the tenant to contribute a portion of the shopping center's advertising and promotional expenses.

  6. KEY PEOPLE Other than these basic needs one also has to keep in mind the furniture and other technological needs associated with leasing a new property. It's important to carefully review the lease agreement and understand all of the expenses that will be incurred before signing a lease for retail space for rent.

  7. CONCLUSION The article talks about the various expenses you might have to incur other than your rent for retail space. These are some of the key expenses you will need to keep in mind whether you are leasing a place in your locality or at the Jumeirah shopping center, in Dubai. Accounting for all these expenses is the best way to plan for the future before leasing any property

  8. THANK YOU http://corporate.unioncoop.ae/en/

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