All Forum Posts by: Damon DiPlacido

Hi Peter - Based on the pictures provided your space would be geared toward small mom & pop tenants only, if retail, and not to chain stores. Most tenants looking at this type of space, would probably only look at a 1 year lease - you may get some that would do a 3 year lease.  The question I have is do the numbers on a 3 year deal proforma out when providing some free rent (after tenant opening), in lieu of tenant allowance? Personally, I would not recommend giving TI here.  Also, regarding brokers, this space would be geared more towards brokers doing small commercial - KW Commercial or another residential firm that does some commercial, as an example.  For commission, for this space you could probably do either an "as collected" commission where you pay as the rent gets collected, or maybe a hybrid where you pay some portion up front and the remainder over time, or depending on the deal, sometimes even 1 month's rent. 

Peter - Here are the major retail leasing brokerages that cover northern NJ: RJ Brunelli, Ripco, Katz & Co., Sabre Real Estate, RK Futterman, Welco Realty, and The Goldstein Group.  They all rep major retailers, which they will show on their website. But they will also rep local successful retailers which won't show on their websites. If one of these firms brings you a deal with a major tenant, I would anticipate you will likely pay 5-6% of the base/initial lease term, paid half at lease execution and half at rent commencement.  

What more can you share about the property? What other recognizable retail is near it? Is it a single tenant or multi-tenant building? Street retail or a strip? Can you say which town specifically - like Jersey City, Hoboken, etc? Normally, I would ask about population density and income, but this shouldn't be an issue here. 

Starbucks standard store prototype today is 1400-1800 square feet, and require a minimum of 23 feet of frontage. Off-highway store sites require 2645 square feet; maximum visibility to store and drive-thru function. Provide convenient ingress/egress. Located within 1/4 mile of an interstate or off-ramp.Location should be a natural or known stopping point for travelers. Also prefers 11-car queue (dedicated drive-thru lane). Drive-thru site locations require 1750 square feet, maximum visibility and signage with convenient ingress/egress. Also prefers an 8-car queue (dedicated drive-thru lane with a 12 feet width)/6-car is acceptable. All site locations also require a minimum of 17 dedicated parking spaces.

For most suburban markets, a population density of 50,000 within 3 miles is acceptable, in smaller markets they will consider 25,000 within 3 miles.