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| SHOPS FOR RENT IN PATNA |
Mr. Kumar started a franchise coffee outlet of a
brand in Patna. Though coffee drinking is not a part of Bihari lifestyle; he
was confident of winning the young crowd of Patna. From the first day on wards
what irked him was the high rental that he was paying for the space and the
large security deposit that was asked for the same. The rental and electricity
bill constituted 60% of his fixed overhead costs. He paid Rs. 65000 for his 800
sq ft outlet. Maintenance and electricity charges took it to around Rs.85000 on
an average monthly. This recurring fixed overhead cost has taken the lead time
for breakeven from usual 8 months to unbelievable 2 years. And now the
landlord/owner of the place feels that the rent be further increased as his
business is running well. The truth is that he is yet to break even and the
summers are around and there will be dip in his business and at the same time
the electricity bills due to air conditioning cost will increase leap bounds.
In fact many a times he feels like calling it a day.
The story above is the story of a number of new
business people in Patna. The entry barrier for any shop, showroom and retail
outlet has increased manifolds. One major factor being the high commercial
rentals in thriving markets in Patna. The other unique phenomenon engulfing
commercial rental market of Patna is that it does not matter to the
owner if the space is empty for months but he/she would not buzz and lower the
rent by even 10 to 15 percent. It is
matter of attitude and lower business acumen. An interesting angle in this
regard is that one should try to avoid taking rentals at places where the
landlord has no other income but the rentals. These types, will make your
living miserable through their uncalled for advises and interferences. They are
only entertained due to the lack of opportunities available. These so called
“nassebwalas” will make you feel “badnaseeb” daily. Therefore the profile of
the landlord in Patna is very essential before you sign on dotted lines.
Will the commercial rent face correction in near
future? It is unlikely, as the demand still is larger than the supply. Secondly
a large number of areas in central Patna are now only viable for offices and
nor for shops in Patna or showroom in Patna and retail outlets in Patna.
Patnaites are looking for better options than central Patna due to lack of
parking and traffic jams, which are daily occurrences.
What are more disheartening are the rentals in
Patna at newer locations like Shaguna More. The high asking rates in these
areas is due to certain automobile showrooms paying out of their skin to
acquire rental spaces on the main Road. Nobody is ready to understand that they
cannot be the benchmark. The big companies only constitute small percentage of
local business in any city. Therefore their rentals are exceptions and not the
rule.
One only hopes that the better sense prevails and
the law of averages catches up the commercial rental market in Patna!!!!
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