Back to the drawing board -- again
| We finally heard back from the leasing agents in AZ and were told that the only way to have an exclusive on coffee and stop them from actively seeking our green friends would be to pay three extra dollars per square foot per year. When we negotiated this lease several weeks ago, we agreed on a price that was at our upper limits. Because this company will still be trying to get Starbucks if we sign the lease without exclusivity, it is not going to work for Cafe Evoke. We have already begun searching for new locations and we have asked a few people we have met along our journey to help us. They have agreed to keep their eyes and ears opened for us. We will find a place and get the doors opened soon. Thanks, again, for the support along the way. With two locations no off our charts, we have gained experience and endurance for our future. ~~be bold |
...a thought by Cafe Evoke Coffee Catering at 11/15/2005 04:49:00 PM
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Comments on "Back to the drawing board -- again"
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Maya said ... (11/16/2005 07:36:00 AM) :
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BattleMan said ... (11/16/2005 02:19:00 PM) :
post a commentSorry to hear about the lease. Urgh..at the end money always counts, but I'd like to wish you best of luck for the next location. That's ok..don't give up because at the end there are reasons for everything. You made the right decision to not higher your already highest budget for a space. You'll find one that's going to feel like HOME. Good luck..
Jason,
Are you using a commercial real estate agent as your tenant rep? I got my real estate license earlier this year so I sort of know about this, even though I'm not practicing.
Basically, you get a commercial real estate agent to work with you; they take your specs and do the negotiating on your behalf. And guess how they get paid? The landlord! Not the tenant. There are various ways they can get compensated, such as a percentage of the total lease up front, or they can take a percentage payment every month. They also get a cut if you, the tenant, renew your lease. They can work with the landlord on amortizing the build-out cost over the life of the lease (keep your startup costs down) and help you renew your lease on better terms (no guarantee, but always worth a shot). They can especially help you with landlords that want an out in case Starbucks comes along.
Because there is a chance for residuals, this is a great deal for a commercial real estate agent. If you are not using one, you should look into it. Since they act as an agent on your behalf with the landlord, the landlord has no idea how inexperienced you may be. He has to negotiate with a professional negotiator. Do what you do best; make coffee. Let a professional handle your real estate problems.
- BattleMan