Commercial Lot - How do I get a Starbucks to be our Tenant?

[Garrett White]

Hey BP. I'm living in an area of rapid residential and commercial growth. I'm eyeing several distressed commercial lots that are in close proximity of 1) a prominent neighborhood in town and 2) new build town houses that are attracting demographics that would perfectly suit placing a starbucks or Caribou Coffee. Any help with how I should analyze making offers on some of these properties/lots? Also, has anyone done land lease deal where a tenant like them builds on top and signs a 20+ year lease?

Thanks!

[Danny Luu]

@Garrett White  Best way is to get in contact with a good commercial broker that has done previous deals with SB. They're a great tenant to have because they pay high rents and draw a lot of traffic but they're very specific when it comes to picking new sites. A few things you should keep in mind:

- they usually want a drive-thru (may be an issue if there isn't one already and you need to get it entitled. Their requirements may be different in the east coast but I've done multiple in the west coast and they've always wanted a drive thru)

- they have very specific requirements when it comes to HVAC, electrical, signage, etc. (if you're planning to remodel an old building, make sure to factor these costs into your number)

- they typically won't build their own building but will do their own TI build out, which typically takes 6-8 weeks 

- since they're publicly traded, they have very strict deadlines for new store openings. So as a developer, you better check and double check the dates you commit to on your lease 

Hope these help!