All Forum Posts by: Ganesh S.

@Jamie Campbell, @Crystal, Thanks for your response - I am primarily looking for CRE realtors that have experience leasing to National tenants and working with local Mom and Pop stores as well.

Thanks

GS

Hi Folks

We are planning a 30,000 sqft Neighborhood Retail center in Rock Hill South Carolina. We want to interview a couple of additional Commercial Realtors in addition to the one we are working with as there is plenty of space to be leased. 

Really appreciate if you could forward any leads and your experience working with them. Appreciate your response.

Thanks

Ganesh S

@Tommy Martinez - They are making approximately 60K per store after paying their salary. Still not a great return for work or the margin for any downturns I would think. 

Thank you so much Joel for additional Info!! I am going to pass on this mostly - these guys are making NOI of only 60K per year after salaries etc.. Their gross margins are close to 50%, but I would have expected for all the trouble they go through, each store would be making much more than that..

@Joel Owens - very true! Never thought about a Massager included as part of bed.. Good concept ;-) 

Thanks @Joel Owens and others.. Appreciate your perspectives..

Any thoughts/experiences with Americas Mattress stores?

GS

Hi Everyone

I am considering an investment NNN retail space, where one of the tenants is a Mattress store franchise. The franchisee has 5+ locations, in a geographical area, and has been in business for last 10 years.. I am curious typically how successfull these stores and what kind of revenue would each store generate. We have close to 4K sqft for this tenant, and with that kind of space and very good demographics of $100K+ income neighborhood, what would be your guess for the NOI for their business? I am trying to figure out how successful they need to be in order for us to have a stable tenant.

Any data points? Appreciate your input

Thanks

GS

Thanks for including me @J.Martin.. I will be there for sure!

Hi Dillon

I am not a realtor, but can tell you what I pay as an investor/owner. 

- Everything is negotiable, sometimes I wont pay the lease fee to realtor immediately but pay in installments as the rent is received. Typically for high risk tenants. 

- First of all the total amount the lease is worth for needs to be calculated = No of years * Yearly rent. For e.g. if yearly rent = 50K and the lease is for 5 years with one option to extend, then total value of the lease is 500K.

- The total lease fee is payable (split between leasing agent and clients agent) could range from 4-6%. More close to 6% if there are two agents or close to 4% if there is a single tenant.

- If the leasing agent also acts as the property manager, then they may be willing to reduce the % as well.

Hope that helps

GS

@J Martin - Its a a testament to your hard work and hustle to achieve this in Bay area!! Thanks for organizing the summit! It was a great event!

Wishing you more successes!