4th February 2007, 01:33 AM
Re: Getting a Stall in Bugis Junction or...
Originally Posted by faisalee
Dont jump into a biz if you think it can make some good money esp from retail operation. The long and tiresome operating hours will rob away your youth and family time.
Cap land is a good landlord, but their terms are stiff and you can hardly fault them for any wrong. To understand further about this point, look at who the key person is who sits right on top. I once talked to 9 key managers from this org, with each representing a mall. All nine of them were females and I was the only guy in the conference room. But i didnt buy their story or their pitch. Fact was, I dont usually like to deal with mgrs as they dont hold weight in their words. Was fun wrestling ideas with these brainy women though.
TPY interchange rent can be quite high. A prime shophouse unit near interchange runs about $18k per month. To rent a small shop front along five foot way can be negotiated with existing tenants. Some charge about $80 a day; some more; some less. Your luck will vary.
Really suggest you do some research before jumping into the wagon esp with big landlords. It can get very sticky when a tenant wants to exit before contract expiry. Also, a proper strategy has to be created even before talking to them. A strategy for entry and an exit strategy not to be shared.
The % return ratio is not meant to kill a tenant, but to remind tenants that anything beyond a reasonable profit, the % cut is a royalty to thank the landlord for bringing crowds in for you. Call it profit sharing, tariff, greed or anything you wish. It is a norm to have such agreements.
If it's just a small booth, there are short term lease which you can venture. If you are able to find one without the need for a contract, that would be even better as you can exit anytime you wish and the only forfeit is the remaining days of that month's rental.
No many people knows that a major retailer like taka has short term lease that cost about 2k and it being short term lease. Those are a steal, but the barrier to entry can be quite tough. Eg. if you want to set up a handphone shop there, they probably wont even reply you as they have their ideal tenant mix to benchmark themself as upper tier.
Good luck to your venture! Every good thing starts from a small idea. It's free to dream; dream it big and work towards that goal objectively.
4th February 2007, 03:26 PM