When you are thinking about starting a business, the location and amenities of your new joint are some of the most important parameters to keep in mind. They can have a huge influence on the success of your business and people are prepared to pay a lot for a promising piece of property. So how much can you spend on renting a shop in Lagos and how to choose your ideal business location? Find out right now!
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1. How much does it cost to rent a shop in Lagos?
The cost of renting a shop in Lagos depends on numerous factors, from the location and size of the property to the amenities and amount of foot traffic the property has. If you look at the commercial property ads on Jiji, you will see that prices range from ₦60,000 per annum for a 40-sqm shop with little to no amenities and an urgent need of a renovation to ₦12 million per annum for a 150-sqm shop in a busy location with a freshly made renovation, a bathroom, and floor-to-ceiling windows for maximum natural light in the room.
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You can even rent out a whole mall for ₦15 million per annum if you have the most ambitious plans to develop your business. However, those are extremes, and most of the shops you will find for rent cost between ₦600,000 and ₦1 million per annum. If you choose to rent a shop at one of the popular markets in Lagos State, you can pay even less than that – there are plenty of offers to rent a small shop for ₦150,000-300,000 per annum.
For this money, you can usually get a moderate-sized shop in a busy location with a rather fresh design, and you can save money by opting for a smaller shop or renting a shop that badly needs a renovation and renovating it yourself according to your taste and the specifics of your business.
2. How to choose the best shop to rent
Even if you are thinking about opening your first ever shop, you probably don’t need us to explain that the space you choose can have a crucial effect on the success of your startup. Here are a few tips that will help you choose the best option for your situation.
- Have a strict budget. Before you even look at the options, you need to know how much you can spend on the property. Having a defined price range will help you keep things sensible and avoid the disappointment of finding the perfect property only to realize it’s two or three times bigger than your budget.
- Be realistic about your possibilities. You may want a very spacious, beautifully designed shop in the most popular mall in your area, but it can be far outside of your budget and be unnecessarily big and posh for your type of business.
- Consider the location and the state of the property. You don’t need to be a business expert to realize that a new shop can only survive in an area with a lot of foot traffic, so markets, malls, and other popular shopping locations will work best. The state of the property is also an important parameter since if it needs a renovation, you will end up spending much more than you originally thought.
- Is there room for growth? If your business goes well, you may think about enlarging it very soon. For example, if you want to open a beauty salon, you can eventually make it twice as big and offer more services to more customers. That is why a standalone shop is less preferable to buildings where you can simply rent out a shop next to yours.
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