Are dance studios good tenants? I have a prospective tenant that’s a dance studio. Never had one before but I feel like whenever I see one somewhere else they don’t stay long
[{"id": "gqm7261", "text": "Independent or franchise? I have had a franchise one as a tenant for like 13 years, it's an Arthur Murray Dance Studio. I know there is another franchised one called Fred Astaire. If it's independent I insist on a PG with accompanying financials. A big bonus if this is a 2nd or 3rd location and not a dreamer starting out for the first time.", "replies": [], "depth": 1}, {"id": "gqmbkwr", "text": "I think it also depends on the space. Retail or a flex warehouse?", "replies": [], "depth": 1}, {"id": "gqmc4yn", "text": "Don\u2019t put them above/under any other tenants who give a shit about noise, we\u2019ve made that mistake before....", "replies": [], "depth": 1}, {"id": "gqmcwpl", "text": "It depends on their business plan, but let's face it, they are not being replaced by the internet.", "replies": [], "depth": 1}, {"id": "gqmea1q", "text": "I've seen a lot go out of business. Music schools are similar. Get a good lawyer to write you a monster of a guaranty with damage provisions. My default clause on commercial leases is about 3 pages long.", "replies": [], "depth": 1}, {"id": "gqmehqw", "text": "I'd be cautious if they don't have existing locations", "replies": [], "depth": 1}, {"id": "gqmfn86", "text": "Check experience. It can be a tough business to run but I know of many that stay in business for years. Pretty inexpensive to start with low overhead so rent will be their biggest expense. Check with your insurance agent to make sure it\u2019s ok before you allow them in. Source: have owned a dance studio and am an insurance agent.", "replies": [], "depth": 1}, {"id": "gqmgaws", "text": "I leased to one once that was in business for many, many years there even after I sold the property.  They were an existing business expanding into my location so their experience was a large part of it.", "replies": [], "depth": 1}, {"id": "gqmpe9l", "text": "I would suggest a one year lease with 5 one year options. No TI or build outs. Retail space is hard to fill, but I\u2019ve had a mixed bag with dance studios.", "replies": [{"id": "gqn4e3y", "text": "This deal structure provides zero long term value to the asset, and gives all the power to the tenant.  Should you want to sell at some point this deal will be a liability.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gqmprc8", "text": "Whats nice is minimal build out.", "replies": [], "depth": 1}, {"id": "gqn3gcc", "text": "Startup dance studios are tough right now with social distancing.  \n\nI\u2019d feel better if\nA) relocation \nB) expansion location\nC) vacant space that\u2019s been empty a while (something is better than nothing)", "replies": [{"id": "gqniwte", "text": "Maybe I'm just related to more of these dance moms, but it seems like they give 0 shits about social distancing/COVID precautions. Again could just be my family being my family though \ud83d\ude44", "replies": [{"id": "gqnj0r2", "text": "I know a long-standing owner of one in CA and they\u2019re just getting by.", "replies": [{"id": "gqnk3a8", "text": "Ah CA makes sense. This is midwest flyover states.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gqn50do", "text": "Hours of business/parking concerns are to be considered, along with the comments below regarding credit and operating histories.  And...insurance.  Pay attention to the insurance language in your lease and how you as LL might have liability concerns \\*when\\* somebody gets hurt.  You will be sued as LL.\n\nOverall, hard pass for me if it was my building.\n\nAnd the couple of comments regarding \"something is better than nothing\" should be ignored and generally shamed.  Horrible advice.", "replies": [], "depth": 1}, {"id": "gqn8jxa", "text": "There's one down the street from me, 6,000 sf...pays her rent like clockwork.\n\nI know the owner.\n\n12 years.", "replies": [], "depth": 1}, {"id": "gqokyj1", "text": "Scrutinize their financials.  Most are bad tenants, but you need to do the due diligence.", "replies": [], "depth": 1}]