How to lease retail store to franchise

Question

Hi BP community! I just acquired my first mixed used building. Sorry as it might be a stupid question.. I want to rent the store to franchise like Starbucks, Duncan Donets,etc but don't know how to start. Do I just list the store to MLS and wait for them to contact me? Or should I contact those franchises directly? Is there any service out there to contact franchise that might be interested in my location?

Thanks!

Damon DiPlacido · Answer

Those are 3 good firms. One additional point...don't choose the broker based on proximity to the site. Good retail leasing firms cover a wide geography and all three of the firms you listed will cover all of northern/central NJ, drawing a line from Trenton across the state and northward.

Damon DiPlacido · Answer

It's one thing to get the property in front of the right person, but then what? If you've never negotiated a retail deal before, I wouldn't recommend by starting with negotiating an LOI on your own with Starbucks. Find a good RETAIL leasing broker to represent you, who has the retailer contacts and has experience negotiating chain store deals.

Joel Owens · Answer

Starbucks IS VERY picky on where they go. Decisions often take 6 months or longer to commit to a site or a space.

Best thing usually is to find out the tenant rep broker for those areas where your property is and present it to them.

They are often the gatekeepers for the high level real estate department personnel at the different brands.

I have had some luck as a developer contacting directly and then a bunch of times they have a tenant rep broker. With a signed lease you will need to pay a leasing commission and have tenant improvements.

Good luck.

Chunwai Lai · Answer

Thank you all for the feedback!

I found these retail broker in my area to discuss further

http://rjbrunelli.com

http://www.thegoldsteingroup.com

http://jefferyrealty.com

How to lease retail store to franchise

How to lease retail store to franchise

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