All Forum Posts by: Robert T.

I look at over a thousand properties a week nationally for clients. You have a larger problem then the TI. Is this a free standing building STNL? If so QSR's hardly ever do only a 5 year primary term lease. Most are 15 to 20 years with fixed increases.

As a developer you do not have a salable asset with only 5 years of guaranteed rent on it. Lenders will do very short financing amort. and a ton down from a buyer which will kill their cash on cash returns.

Even Starbucks does 10 years primary lease with 10% bumps every 5 years.

NOW if you are talking a shell space INLINE in a strip center then 5 year primary leases are common but you have many businesses in one center. Free standing 5 years is not common and rarely seen.

You might want to revisit the lease that was drafted as there might be a ton of mistakes in there before executing it.

TI would be very minimal on only a 5 year lease especially with a franchisee guarantee for credit.

@JoelOwens- So, on a inline strip, what do you see for T.I psf in your area? I know this potential tenant is asking for the moon. Again thanks for sharing your knowledge!

0 Votes

Very specific question for those that are familiar on this process i.e. CRE brokers & LL. We are delivering a shell building for a national chain QSR franchisee. What have you seen LL offer for Tenant T.I. assuming 5 years lease with 3 options. Any insights appreciated.

0 Votes

@NooshinDetches I am wondering what happened in the end and how much it cost you? We are developing and adding a building to an existing lot that we own in Houston. The survey companies have quoted around 8K to plat into one commercial reserve- not cheap.

0 Votes

In a similar situation. 9 months down the road- still working on various plans & permits. But, you really got the land for almost free! Good job!

0 Votes

Hi: I have been asked by the City to provide a plan and profile through our P.E. for a new construction of a 2500 sf single storey building on a 8000 sf lot. Anyone has done this before? Any cost estimate from your own experiences?

For those not familiar with plan and profile:

http://rebar.ecn.purdue.edu/plan%20reading/Road/sheets/Sheet%2027/Sheet27.aspx

0 Votes

@Joel Owens Sorry- asset class is retail- multi unit shopping center and single tenant.

0 Votes

@Joel Owens- thanks. Who is more likely to have the 1031 buyer- the national chain brokerage or local independent? In the marketing meeting, the national chain claims that they have more access to 1031 buyers as they are better networked than the local independent. What do you think?

0 Votes

Originally posted by @Rick Ferguson:

chose the agent and their results opposed to the Brokerage firm.

@Rick Ferguson- many brokers seem to start off with a national chain and then go independent,

0 Votes

Originally posted by @Russell Brazil:

If you have been happy with the service you received in the past, I would go back to you were happy with before. The company isnt as important as agents/brokers move around from firm to firm fairly often.

@Rusell Brazil- it is true. My favorite broker is not with a national chain and is an local independent. National chains sometimes can be restrictive but they have the wide network connections that can bring you a buyer- especially from out of town.

1 Vote

Originally posted by @Martin Z.:

"Sometimes bought and sold without a broker" if you have the experience, then why use a broker

@Martin Z: Selling without a broker occurs when the property is highly desirable, and there are many buyers out there who are straightforward. and we can get what we want in terms of pricing. We use an attorney and our favorite title company. Brokers definitely have a role as there are sometimes complicated deals, and the intermediary brokers serve as a buffer during the negotiation process. Thanks for your opinion!

0 Votes

All Forum Posts by: Robert T.

Robert T. has started 15 posts and replied 76 times.

Post: Polling Landlords & Brokers on T.I.

Post: Polling Landlords & Brokers on T.I.

Post: Houston Platting

Post: building a commercial/residential building

Post: Cost of Plan and Profile Engineering

Post: Which Broker to Use?

Post: Which Broker to Use?

Post: Which Broker to Use?

Post: Which Broker to Use?

Post: Which Broker to Use?