The demand for, and value of, retail space in Pakistan increase by 10 to 25% every year. Although conventional venues for retail space, such as malls and commercial areas remain the first choice for investors, space in hospitals and educational institutions (including schools, colleges and universities) is gaining traction in Pakistan.
Factor in the following if you are thinking about renting rental space in a school, college, university or hospital:
1. Educational institutions and hospitals offer a limited number of retail outlets, which usually range between five and 10. They are usually not available for purchase and can only be rented.
2. Rental rates are 10 to 12% lower compared to malls and commercial areas; they increase by 10 to 15% every year.
3. Rental agreements usually last for three years, after ehich can be renewed; a six-month advance and a year’s security deposite (equivalent to a year’s rent) are required when the agreement is signed. Round the clock security, utilities such as water, gas and electricity, and maintenance , are usually covered in the rental agreement.
4. Retail space sizes range between 100 and 300 square feet on hospitals; in educational institutions the range between 50 and 80 square feet.
5. Average monthly rentals rates between Rs 80 and 280 per square foot.
6. Businesses that work well at hospitals and educational institutions include pharmacies, eateries, general stores and bookshops; flower and gift shop do well in hospitals.
7. Most educational institutions and hospitals only allow a single type of business to function at the same time; for example, if a bookshop is operating in the building, the presence of another one will be discouraged.
By Uzma Nawaz