Your competitors. Look at local retail outlets, in addition to other bars as this is the industry in which your investment product is placed. If they are going for an average of, lets say, $15 per square foot, and you are charging your clients $19 or $20, you may want to make the adjustment. This does not apply of course, if your bar offers higher value than the afore mentioned competitors. You can ascertain whether or not that is the case using basic appraisal strategies, or having it professionally done. The website www.commercialpropertyappraisal.com is very resourceful here. The combination of similar rental rate averages, in addition to accessing your properties value should help you arrive at a reasonable price. Just be sure to emphasis the reason why your prices are higher, as these are selling anchors for negotiating.
Nov 19, 2010