All Forum Posts by: Damon DiPlacido

Hi Susie,

I've used Katz & Associates in Florida and they've been great to work with - they are primarily retail/shopping center leasing brokers. Vanesa Rodriguez with Katz is based in Orlando. Good luck.

Joel, On the leasing example you cited, it's more like $50k assuming 4%, and not unheard of to get more. Also, transaction volume is higher in leasing versus sales.  

I'm in Philly, so good luck with it. If I can offer a word of wisdom (not advice): we recently back filled a Sears box, and I have a lease out for signature on a Kmart box. Once we knew were engaging Target (their largest retail lease of 2019, I might add), the owner of the portfolio I handle the leasing for hired an attorney who specifically negotiated a number of Target deals before. 

In what market?

I subscribe to both, but we (the CRE community) need to push / help promote other platforms to keep the CRE search / research platforms competitive.

I also have my listings on Crexi. Anyone else use other platforms with success?

Thanks

Damon

I have a Starbucks at one of my property listings, and know the real estate broker contact for W Virginia. Message me.  Also, is the site in Wellsburg? If so, the market looks small for a Starbucks store. Looks like most of their locations in the area are in-store cafes inside larger box stores. Closest Starbucks store I see is on a pad at the Ohio Valley Mall, which is a regional trade area location. 

Fast food obviously, but beyond this, look at the fast casual category (like Chipotle) who are now looking for drive-thru sites. Chipotle took over a bank building at Wendover Place in Greensboro, NC. In this instance, they are using the covered drive-thru area as an outdoor patio. Also, if your state has opened the door to medical marijuana, this category loves former bank sites - vaults being a big part of it.  

Gavin,

Tenant Improvement Allowance (TIA) is a negotiated item, so it's only obligated if you agreed to it. For most small / individual operator Tenants, I would tread carefully on agreeing to any TIA to the Tenant. It does seem like most Tenants today are accustomed to asking for TIA from the Landlord, so if they push hard for it, your initial position should be to offer some 'free rent' after opening rather than writing a check; if they push back on this, then if the deal terms make sense (high enough rent, long enough term, strong enough financials/signature), and it's a good concept, perhaps offer a combo of some free rent and a little TIA. Also, keep in mind, if you do agree to provide some TIA, NEVER pay it up front, it should be paid as a reimbursement typically within 30 days of opening of business, receipt of first month's rent, and receipt of all lien waivers. Also if you make a TIA payment, you should negotiate what the money can go towards (e.g., permanent fixtures).

Gavin, 

It sounds like you are referring to a Tenant Improvement Allowance, is that correct? If so, you (the owner) pays money to the tenant as a contribution towards the deal to go towards some of the fit-out costs. Due to the high failure rate of bars, unless they have significant experience, have solid financials, the bar is in a good neighorhood (e.g. Northern Liberties, Rittenhouse Sq), and have a proven concept, I would tread lightly with making a TI contribution to the Tenant. I would offer a free rent period after opening in lieu of a TI contribution, and negotiate from there. Different ways to skin that cat...for example if you gave 6 months of free rent on a 10 yr term, you could structure it as "3 months of free rent after opening plus one free month at months 13, 25, and 37 of the term", and then extend the term 6 months to be a 10 yr and 6 mo term. If you do ultimately give some TI $ to the tenant, if they close early be sure to include language that the tenant is responsible for the repayment of the  unamortized portion of the allowance. 

Damon

Sovat - Is this $18-20 psf NNN? I know each market is different but $18-20 psf sounds high for 2nd floor Class C space, especially if a NNN rent number. What are your nets per SF?