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Rent To Gross Sales Ratio Question

Posted By Erik, 5/4/2014

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Hi David.  I am working on a property transaction where there is a major national big box furniture tenant as one of the two tenants in the property.  Could you please give me an idea of what a healthy rent to gross sales ratio might be for such a tenant?  Thanks!


From Erik, 5/4/2014  2:28 PM

Reply From David McMahon posted by Russell Bienenstock:  Hi Erik - in general occupancy to sales ranges from 3-9%, with 5% being a general average.  You would think that big box did big volume, so they would be on the very low side when compared to revenue.  There are many factors when considering this though.  Let me know if you need a detailed evaluation or consultation on this.  Thanks

David McMahon, CMA, EA | Director, Consulting & Performance Groups | Certified Management Accountant, PROFITsystems, Accellos | 422 E. Vermijo, Suite 100, Colorado Springs, CO 80903

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