What should be the percentage of rent to sales in a retail business?

Retail speciality rent should not exceed 10% of gross sales.

Project a realistic expectation of sales to establish a rent you can support.

Calculate your base rent on this projection and allow for a 20% error on the down side.

Keep in mind the lessor must cover costs and realize a gain on the investment, so new facilities may not be within range of what you can support. Depreciated older property may be the best option.

If your business is characterized by growth, you may want to offer the lessor a percentage of the sales over the base amount to offset a lower rent.