I want to keep on a little bit about this triple net. What confused me at first (and I looked at this several years ago) is why, in this terrible economy, commercial real estate folks are gutting the business owner--both large and small--by such methods. Well, it saves them money, trouble, and upkeep for their properties. Now a lessee could lease a property, sign all the appropriate documents, and promise to pay on time and take care of the "investment." What I have seen happen in my limited experience, however, is renters not paying (or paying late) and destroying the store either by ripping out appliances, built ins, and fixtures, or demolishing the insides altogether. I have also more recently seen store owners just up and leave--break the lease. I do not know legally what happens at that point, but it can't be good.
Just yesterday, one of the realtors I contacted about available stores here in Sachse contacted with with options smaller than she had already suggested (this is after I told her we were looking for under 1,000 sq. ft.). The two new spots are a little over what we asked about, so I inquired about price per sq. ft and triple net. Her response? She could be a used car salesman: "Tell me what monthly cost you have budgeted..." Really? I may be new at this, but even I know better than to answer THAT! So, onward and upward.
My question now is, what can I negotiate when I do get a contract for this new space at the mall? They are giving us leeway on several items per square foot, and I do not want to negate those things. However, I do not like an estimated cost for anything, because something like electricity can definitely fluctuate. For example, Don reads the electric meter daily and tracks usage and cost per day. In our current location, we have yet to see the meter, so we cannot track usage. This bothers us as three units are together and use, I think, the same transformer (both are large restaurants). Because Don and I are energy use conscious, we use compact florescent bulbs and are very conservative about turning breakers off if we are not using them. I do not want management to dictate what we pay unless I can see myself the numbers. Is this a negotiable item? Between that and common area maintenance (CAM), we will see. I still have research to do...
Monday, February 15, 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment