What does a lease look like for a spirit Halloween?
No reason just curious
[{"id": "ivbf5y8", "text": "1-2 month gross lease for a set $ amount  \nDeposit  \nTemp signage", "replies": [{"id": "ivblu4s", "text": "This is what I\u2019ve seen from them.", "replies": [], "depth": 2}, {"id": "ivd8gle", "text": "They also typically like to keep utilities in LL name and pay a utility deposit to cover. I have seen 3 month leases from them.", "replies": [{"id": "ivdbkp4", "text": "Yea. 3 would be something they were forced to accept. They use those locations for staging storage", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ivbiprs", "text": "https://youtu.be/BW_bQJAucbE \n\nHere's a Wall Street Journal video on the topic. Doesn't get much into the lease X's and O's but an interesting video none the less", "replies": [], "depth": 1}, {"id": "ivbkb19", "text": "Always wondered too", "replies": [], "depth": 1}, {"id": "ivbkuo7", "text": "I\u2019d be surprised if they weren\u2019t on a percentage lease.", "replies": [], "depth": 1}, {"id": "ivcpbty", "text": "Fully gross lease (or license agreement) starts mid-August ends mid-November.   Rents seem to max out at $30k in non-urban locations.", "replies": [], "depth": 1}, {"id": "ivd31na", "text": "OP isn't asking reason but I'll provide some explanation. They are explicitly targeting vacant big box retail near urban areas that don't need tenant improvements. \n\nThis is similar to businesses that have subleased there space as is. Especially post Covid.", "replies": [{"id": "ivdnh4k", "text": "So they do move around and just find whatever big vacant space is at the moment?", "replies": [{"id": "ivfcitw", "text": "Yes, examples would be grocery store going dark, where they are still paying the lease, but lose less money by having the space vacant or subleased.\n\nThere is a meme about the scariest thing is Spirit Halloween ruining our childhood by occupying old vacant toys r us stores.\n\nMost retail is only profitable around around black Friday and Christmas holiday. Spirit Halloween tries to maximize this profit by only doing short term leases during their profitable months.", "replies": [{"id": "ivgscq6", "text": "Would these LL wants to sign a percentage lease that ties to their gross sales knowing these holiday driven retailers are probably very profitable during these months?", "replies": [{"id": "ivh0lzd", "text": "It depends on if it is a direct lease or sublease. In the case of the sublease, the tenant gets to structure the short term lease structure with the sublessor and would probably demand a premium for a short term lease vs longer term lease, they could haggle over doing a percentage of sales as well. But I don't know Spirit Holloween's preference. A lower base rent and higher percentage lease would lower risk, but might also lower profits for these short term tenants.\n\nA landlord can typically only reject a sublease in certain cases such as if there is a co-tenant clause that would allow an existing tenant to reduce their rent if the subleased tenant were to move into the property. \n\nIf I were a landlord I would be reaching out to a retail broker expert to see if I would get more rent from a sales percentage or fixed lease structure.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ivdnf4s", "text": "Always wonder that too. Also why do they always seem to able to be in the same space\u2026.I always wonder like why that space just always happen to be available when the Halloween comes around and they need a place?!", "replies": [{"id": "ive0od4", "text": "Those spaces are generally hard to lease perpetually vacant spaces.  Maybe they are too large and deep and the LL doesn\u2019t want to subdivide, or they want too high a rent, are waiting for the right tenant, and are happy to lease to Spirit on a short term as-is deal.  \n\nThis is why Spirit gets to lease them every year. Lastly, owners can treat these leases like found money, since they probably aren\u2019t budgeted, so it improves actuals.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ives2n7", "text": "Great question. Also, does anyone know how they chose their locations?", "replies": [], "depth": 1}, {"id": "ivmkzvx", "text": "Depending on your asset you might be able to get a percentage of sales with a minimum rent floor.", "replies": [], "depth": 1}]