Tips from a financial expert: How to reduce your rental costs as an entrepreneur

Tips from a financial expert: How to reduce your rental costs as an entrepreneur

According to a report by rp-online.de,

The boss of the men's outfitter Linus, Ingo Holzer, speaks critically about his former landlord in Düsseldorf. He deliberately moved his shop to the other side of the street because he pays around 6,000 euros less rent there per month.

Commercial property rental prices are a crucial factor for entrepreneurs running their businesses. Such a large difference in rent can have a huge impact on the economics of a business. Especially in times of economic uncertainty, such as the Corona pandemic, such savings can mean the difference for many entrepreneurs between insolvency and the continued existence of their business.

If such rental price differences accumulate in a certain area, it can also affect the entire real estate market in that area. Landlords who charge unrealistically high rents may be forced to adjust their prices in order to continue renting out their properties. This may lead to a change in the general price structure of the real estate market in this location.

Ingo Holzer's decision to relocate his store could also encourage other entrepreneurs to take similar steps, which in turn could influence demand for commercial real estate in certain areas. This impacts not only landlords, but also potential investors and the area's entire economy. So, it is important to keep an eye on such changes to understand the impact on the real estate market and the industry as a whole.