Leasehold Improvements - What to Expect
We estimate that the leasehold improvements will cost between $5 and $6 per square foot in order to convert an existing location into a Click IT Store.
Such leasehold improvements may include such items as painting, plumbing, electrical, computer network cables, HVAC, carpentry, demolition work, interior, and exterior cosmetics, etc. The floor must be hard and attractive. A wooden floor is preferred and may be a leasehold improvement at an estimated cost of between $2,500 and $4,000. A plate-glass window is necessary for the front of the store, where the inside of the store is in full view from the street.
The cost of such improvements will vary from location to location, and most often can be negotiated to be incurred by the landlord when negotiating the lease. If the landlord makes all necessary leasehold improvements, it is possible the cost is included in the monthly lease amount. ln such an event, your leasehold improvement expenses would be zero.
The average size of a Click IT Store will be approximately 750 to 1,200 square feet. If negotiated wisely, in a down market for retail space, we also expect at least one free month of rent for every year the length of the lease is can be negotiated. It is also possible that the cost for leasehold improvements can be included in the rent, and it is also possible that the cost for the leasehold improvements would be covered by the landlord and not included in the rent when it commences, perhaps three to even four months from the dates the lease is signed.
To help our franchise owners build out their stores, also refer to the pages shown below:
- Point-of-Sale Counter
- Build-out Items from our Company Store
- Paint Colors
The final point to make is that the retail space market, after the Pandemic of 2020, is expected to see a vast amount of vacancies, and this will certainly work in the favor of the franchisee, where the negotiating strength will rest for perhaps years to come.
For a complete spreadsheet showing the total estimated costs associated with opening a Click IT store, click here.