opportunity to rent space

[jacobandalex]

I would very much appreciate any advice or help any of you might have.

I have an opportunity to rent space at a yoga studio where I teach. I love this space, the energy is fabulous. The space that I would use is a small room, just enough space for a table and maybe a chair and small table. When I approached the studio owner about the possibility she was very receptive and asked me to give her some "numbers" to see if we could make this work. It could be a win-win for both of us, I just have absolutely no idea of how to come up with "the numbers". If any of you have any thoughts or advice, I would very much appreciate it.

Thanks and Happy Thanksgiving!

 

[Molly]

My thoughts:

Look at what you think the "fair market value is". In other words look around and see what real estate is renting for in that area which means looking at what's available.

Estimate what you hope to make, and what you can afford to pay them as rent.

Look at what you would have to do if you took the room. Would you have to share it with anybody? Paint it, decorate it, install a wall, etc. (Think direct financial cost, working hours, and impact if any to the building value.)

Look at how convenient and visible would this be. Do you get a sign that can be seen from the road (probably very important)? How visible is your space to clients and how comfortable are they going to be to get to your small room? Basically I'm guessing you need walk-ins from the street so paying premium for great visibility is better than nearly free with no customers. If you aren't convenient and visible to customers how will you make up for it?

When you make an offer (encourage them to make the first offer - push this) make the offer for less than you think they will agree to, but be reasonable.

I hope this helps.