27m² rent-free premises in Spain: newsstand, supplements or rent it out?
An unemployed man in Spain owns a 27m² commercial space and is torn between opening a shop or renting it out. Forum users estimate 300-400€ in rent versus 4,000€ in revenue needed for a business.
English · Original discussion in Spanish · Published
Rent-free 27m² premises: newsstand, supplements or rent it out
What can you open in a 27-square-metre space with no rent to pay? That's the question a long-term unemployed man —out of work for a year and a half, living with his parents— is asking himself. He owns a premises on a side street leading onto a main avenue in his city. The space isn't big, but the advantage is huge: no rent to pay. His initial idea is a newsstand, but 160 metres away there's already one, the only one in the neighbourhood. And that's where the problem begins.
His specific question is whether unsold magazines and newspapers are returned to the supplier or paid out of pocket. The answer is unanimous: newspapers are returned daily and magazines weekly or monthly, depending on the type. You only pay for what you sell. But several users warn that the margin is so low that the business "loses more money than it makes".
Sports supplements: the option gaining ground
The author himself acknowledges that there are several gyms within a 200-metre radius and no supplement shop. That combination —captive demand and no supply— gets the most support. Sports supplementation is in fashion: protein, creatine, accessories, sportswear. A 30-square-metre space with a small consultation room attached can work, according to the experience of a similar business in Zaragoza that "has a constant stream of people at all hours".
The business requires no major investment in perishable stock, allows 24-hour vending machines, and can be complemented with organic products or parapharmacy. The key, they warn, is to actually like the subject: "there's nothing worse than being self-employed locked up 16 hours a day hating what you do".
Self-service laundrettes: a trend with doubts
Another option that comes up is the self-service laundrette, with no attendant, with large washing machines for duvets and blankets. Several have peine in Zaragoza and in small towns too. The going prices: 4 euros per wash and 1 euro for the dryer. The problem is that people wait there while their laundry runs, so footfall depends on the area and the profile of the neighbourhood.
Sandwich shop and grocery: licences and competition
A sandwich shop or tapas bar with vending machines is also considered, but a bar licence can take "years, easily" due to adapted toilets, extractor requirements and building work. The 15,000 euros go fast. What's more, there are already cafés, pastry shops and a bar nearby. A grocery shop doesn't seem viable either: there are several, plus supermarkets like Dia.
The option nobody wants to hear: rent it out
Several posts insist on the same thing: rent it out. "Unbeatable time invested/return ratio", one user sums up. A forum member estimates you could get 300 to 400 euros a month without lifting a finger. Running a business would require an employee, 12-hour days, weekends, and revenue of 4,000 to 5,000 euros a month to net 1,000 euros. The free premises isn't decisive: if it were a premises worth 10,000 euros a month, it would be; at 300 euros, it's like saving on your electricity bill.
The antiestéticar of shops closing in the area is real, but the author attributes it to the high rents others pay. He starts out with that advantage. The question is whether it's worth burning that advantage on a thin-margin business or collecting the rent and waiting for better times. The final irony: the rent-free premises is the only income that never disappoints.
What can you open in a 27-square-metre space with no rent to pay? That's the question a long-term unemployed man —out of work for a year and a half, living with his parents— is asking himself. He owns a premises on a side street leading onto a main avenue in his city. The space isn't big, but the advantage is huge: no rent to pay. His initial idea is a newsstand, but 160 metres away there's already one, the only one in the neighbourhood. And that's where the problem begins.
His specific question is whether unsold magazines and newspapers are returned to the supplier or paid out of pocket. The answer is unanimous: newspapers are returned daily and magazines weekly or monthly, depending on the type. You only pay for what you sell. But several users warn that the margin is so low that the business "loses more money than it makes".
Sports supplements: the option gaining ground
The author himself acknowledges that there are several gyms within a 200-metre radius and no supplement shop. That combination —captive demand and no supply— gets the most support. Sports supplementation is in fashion: protein, creatine, accessories, sportswear. A 30-square-metre space with a small consultation room attached can work, according to the experience of a similar business in Zaragoza that "has a constant stream of people at all hours".
The business requires no major investment in perishable stock, allows 24-hour vending machines, and can be complemented with organic products or parapharmacy. The key, they warn, is to actually like the subject: "there's nothing worse than being self-employed locked up 16 hours a day hating what you do".
Self-service laundrettes: a trend with doubts
Another option that comes up is the self-service laundrette, with no attendant, with large washing machines for duvets and blankets. Several have peine in Zaragoza and in small towns too. The going prices: 4 euros per wash and 1 euro for the dryer. The problem is that people wait there while their laundry runs, so footfall depends on the area and the profile of the neighbourhood.
Sandwich shop and grocery: licences and competition
A sandwich shop or tapas bar with vending machines is also considered, but a bar licence can take "years, easily" due to adapted toilets, extractor requirements and building work. The 15,000 euros go fast. What's more, there are already cafés, pastry shops and a bar nearby. A grocery shop doesn't seem viable either: there are several, plus supermarkets like Dia.
The option nobody wants to hear: rent it out
Several posts insist on the same thing: rent it out. "Unbeatable time invested/return ratio", one user sums up. A forum member estimates you could get 300 to 400 euros a month without lifting a finger. Running a business would require an employee, 12-hour days, weekends, and revenue of 4,000 to 5,000 euros a month to net 1,000 euros. The free premises isn't decisive: if it were a premises worth 10,000 euros a month, it would be; at 300 euros, it's like saving on your electricity bill.
The antiestéticar of shops closing in the area is real, but the author attributes it to the high rents others pay. He starts out with that advantage. The question is whether it's worth burning that advantage on a thin-margin business or collecting the rent and waiting for better times. The final irony: the rent-free premises is the only income that never disappoints.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (32 replies).
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