Average Restaurant Rent Per Square Foot By Zip Code
Are you looking to open a restaurant but have no idea what the rent would be? Or maybe you already own a restaurant and want to compare your rent with others in the same zip code? Either way, understanding the average restaurant rent per square foot by zip code can be crucial to the success of your business. In this article, we will break down the average restaurant rent per square foot by zip code and provide you with useful insights to help you make informed decisions.
What is the Average Restaurant Rent Per Square Foot?
The average restaurant rent per square foot varies from city to city and even within different zip codes of the same city. Therefore, it's important to do your research and understand the market you're looking to enter. Average restaurant rents in New York City can range from $200 to $500 per square foot per year, while in San Francisco they can range from $50 to $225 per square foot per year.
However, keep in mind that these numbers are just averages and can vary based on location, size of the restaurant, and other factors such as the type of cuisine and customer foot traffic. For example, a restaurant located on a main street with high foot traffic will have a higher rent than one located in a residential area.
How is Restaurant Rent Calculated?
Restaurant rent is typically calculated by multiplying the square footage of the restaurant by the cost per square foot. For example, if a restaurant is 2,000 square feet and the cost per square foot is $50, then the monthly rent would be $8,333 (2,000 x $50 = $100,000 per year divided by 12 months).
Keep in mind that in addition to the base rent, most landlords also require tenants to pay additional expenses such as property taxes, insurance, and common area maintenance (CAM) fees. Therefore, it's important to factor in these additional costs when calculating your overall rent budget.
Average Restaurant Rent Per Square Foot by Zip Code in Major Cities
As mentioned earlier, restaurant rent can vary greatly within different zip codes of the same city. Therefore, we have compiled the average restaurant rent per square foot by zip code in major cities to give you a better idea of what to expect.
New York City
In New York City, restaurant rent can vary greatly depending on the location. Here are the average rents per square foot by zip code:
- 10001: $300 to $400
- 10002: $120 to $200
- 10003: $200 to $300
- 10005: $70 to $100
- 10007: $100 to $200
- 10009: $120 to $200
- 10013: $200 to $300
- 10016: $225 to $375
- 10019: $225 to $375
- 10022: $225 to $375
- 10036: $225 to $375
San Francisco
In San Francisco, the average restaurant rents per square foot by zip code are as follows:
- 94102: $100 to $150
- 94103: $50 to $150
- 94107: $50 to $150
- 94108: $150 to $225
- 94109: $75 to $150
- 94110: $50 to $100
- 94114: $75 to $150
- 94117: $50 to $100
- 94123: $200 to $225
- 94133: $75 to $225
Chicago
In Chicago, restaurant rents per square foot by zip code are as follows:
- 60601: $250 to $350
- 60603: $275 to $350
- 60607: $25 to $50
- 60610: $150 to $250
- 60611: $200 to $300
- 60613: $25 to $50
- 60614: $100 to $200
- 60618: $25 to $50
- 60622: $75 to $150
- 60654: $200 to $300
Conclusion
Knowing the average restaurant rent per square foot by zip code can provide you with valuable insights into the market you're looking to enter. Keep in mind that these numbers are just averages and can vary based on various factors such as location, size, and foot traffic. It's important to research the market and understand the costs involved in opening and maintaining a restaurant. Remember to factor in additional expenses such as property taxes, insurance, and CAM fees when calculating your overall rent budget.