Retail Restaurant Lease: Refer or handle myself?
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[{"id": "g3789jh", "text": "How big is your market? Is it small town america or LA? \n\nWhat would be a good referral fee in your mind?", "replies": [{"id": "g378t7u", "text": "It\u2019s Atlanta.\n\nI\u2019m flexible on the referral fee. I\u2019d do 20% if that meant someone holding my hand through the process where I\u2019m basically a glorified assistant.", "replies": [{"id": "g37aoo5", "text": "Refer this out, especially in this retail environment. 20% would be an acceptable amount to ask for. While I appreciate your friends willingness to help you, it's ultimately a detriment to him. I'm not trying to be mean, but theres alot for you to learn and now is not the time to learn if your friend is seeking an expansion. Do you have any clue on what will even be the main negotiation factors in this deal and how and what other QSR's/fast casual/sit downs are even negotiating/doing in your market and if you're in Atlanta do you even know what market rate is and how the nets work without ever participating in a deal?", "replies": [{"id": "g37bbqs", "text": "I understand completely and no offense taken. \n\nYes, he has a location in LA. I\u2019ll refer it.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g37pt0y", "text": "How sophisticated is your renter? If he or she is just looking to get in an existing unit, you can act as a broker. Typically you will need someone to do drawings and get a bid on fitout that will let you know if the space is suitable. If it is a groud lease and build, ok more complicated.\n\nI havent seen brokers involved in anything besides finding the space, negotiating, and writing up a lease (usually would recommend a lawyer anyway). All the fit out stuff is much more operational and contractor dependent. Now the big guys also offer those services, so its about aligning expectations.\n\nWhere you need help is knowing what common terms and conditions and what to negotiate. Further retail is all about the location so the agent should know what spots are best. It is much more serious than resi, where if you fuck up the tenant doesnt go bk.", "replies": [{"id": "g38m5r3", "text": "They aren\u2019t very sophisticated, just starting out and opening in a new state. Referral is the best option here.\n\nAny advice on how to jump into this field at an entry level?", "replies": [], "depth": 2}], "depth": 1}, {"id": "g3a6di4", "text": "I would probably look on Costar/LoopNet/Crexi and see what 2nd generation spaces are available. I would also try to see who is an active retail leasing broker in your market and call them to see if they will mentor you thru this deal and give you that 20% referral.\n\nTypically you\u2019ll want to make sure your client has the following:\n\n1 - business plan/menu\n2 - minimum $150,000 to cover opening and/or tenant improvements\n3 - contractor who is available to come look at the space to provide bids for tenant improvements\n\nIf you\u2019re trying to lease a space that is not built out for restaurant then this is very challenging. I am a commercial real estate agent focused on restaurants and retail and I get minimum 4-5 calls a week for people wanting to open restaurants and maybe 1-2% are really qualified. The stat I heard is 50% of restaurants fail in their first year.", "replies": [], "depth": 1}]