All Forum Posts by: Courtney Duong

Hello BP,

We are in the middle of negotiation with a potential tenant for a 2350 SF at our shopping center. We are getting very close to having the LOI signed and moving into lease drafting. Yesterday we received the Cash Commission Agreement from tenant rep asking for 4% commission of base rent over initial term (10 years term, which we are ok with) with 50% due at lease execution and 50% at rent commencement. We are having issues with paying the commission as they asked since this is 4% of a 2350 SF unit of the entire 10 years term. That's a lot to pay all upfront. In case tenant go dark we will totally lose this amount on commission. So, my questions are:

Should we ask them to spread this payment ongoing?  Like monthly or quarterly?

Can we only pay what we collect?  as in if my tenant goes dark then we are not on the hook for paying this commission?

How would you guys structure this leasing commission payment?  Any creative solutions out there?

Thanks.

 I hear ya.  LOL.  That's what I thought when I saw their menu too.  I had them when we were in Canada a long time ago and they were really good.

It's a franchise.   It is Happy Lemon.  They have many in CA already and few in DFW, Austin.  Now looking to expand in the Houston area.

I see them here too but mostly where there are lots of Asian stores like in Southwest Houston.

Hi BP,

Anyone has any experience having bubble tea/boba tea shop as a tenant?  How profitable are those stores compare to restaurants and others businesses?  @Joel Owens always said rent to sale should be 1 to 10 for restaurants to be profitable, what should be the rent to sale ratio for these bubble tea shops?

Any input is greatly appreciated.

Thanks.

Thanks for the quick response.

 Michael: how about quickpay with Zelle?  Is that also exempt from the 1099 requirement?

Thanks.

Thanks for the report.

Following.   A contractor I know just told me one of his workers just threaten to sue him for $20K for injury he got from using the pressure nail gun while working at a house of another landlord.  So we definitely need to have a waiver form handy to use in the future.