If you’re looking for retail spaces to rent in Philly, it’s important to understand that prices can vary dramatically depending on which neighborhood or area you are looking to rent. You need to consider what you need and where you need to be based on your business. Naturally, Center City pricing is more expensive than other parts of the city. But you need to consider multiple factors when choosing a location, apart from price.
What is Important in a Retail Space?
Here are some factors that can impact your retail space location choice –
- Is it on a main road with lots of traffic to increase footfalls?
- Can the space be easily accessed by cars driving by?
- Does the space have good parking for customers and employees?
- Is there good visibility of store from the street or road?
- Is the area safe? What is the crime rate?
- What is the average income of the area? And is my target customer there?
These factors can influence price and make it more expensive, but the extra costs may be well worth it instead of choosing a poor location that hurts your business in the long run.
Should You be in Center City?
If you can get a lower rent with just as many sales and no drawback in an out-of-downtown area, this is a no-brainer. Some business owners choose Center City because they believe this is where the most traffic is, but this may or may not be the case. If you have a good product or service with good pricing, you can be successful in other areas and locations with far less overhead.
Imagine earning the same revenue with a rent of $1,600 per month versus $4,600 per month. Your profit margin will be substantially higher, which is why it’s important to look at not just revenue potential, but costs. We have seen some retailers whose sales undoubtably rival many Center City stores and whose rent structure is a fraction of the price.
What Retail Prices Should You Know in Philly?
Since Philly prices vary, you need to consider what makes sense to your business whether you run a restaurant or store. Let’s take a look at average retail prices in the city –
For retail space in Logan Square, the average cost is about $46.02 per square foot per year. So, for a 1,500 square foot space, you’d be looking at a monthly base rent of $5,752.
Retail space in Center City’s Washington Square will cost around $42.56 per square foot per year on average. For a 1,500 square foot space, you’d be looking at a monthly base rent of $5,320.
Retail spaces in Center City average $31.99 per square foot. So, for a 1,500 square foot space, your monthly base rent will be around $3,998.
Retail space in University City averages $26 per square foot. So, for a 1,500 square foot space, your monthly base rent will be $3,250 with limited parking.
Retail spaces in Manayunk average $25 per square foot. So, for a 1,500 square foot space, your base rent will be $3,125.
Retail space in Northeast Philly averages about $19 per square foot, so for a 1,500 square foot space, you’d be looking at around $2,375 per month. This is just an average cost but there is plenty of parking in the area and easily accessible. It is also growing in popularity with more and more residents calling it home.
Whether you run a restaurant or retail store, location is an important factor.