Old Fast Food Franchise Site- What do I do with it?
I own a rather dilapidated site that was once occupied by a deadbeat fast food franchisee. I’m having a chat with the real estate manager for the corporate office of that franchise next week. I’d love for them to lease the spot or to find another franchise owner willing to step up. What questions do I ask? Thank You.
[{"id": "ieon9zs", "text": "Ask them for an LOI if they\u2019re interested.\n\nDo you have capital to offer them an allowance to make restorations to the site? Generally, you\u2019d provide the tenant a certain $ per sq foot, that increases the longer the lease they sign. You should ask for a security deposit (usually a letter of credit, but can be cash) for the dollars you give them as part as their allowance. If the site is VERY dilapidated and has issues beyond cosmetics (let\u2019s say not enough electrical service or a roof that\u2019s caving in) they may expect you to make those repairs out of your pocket as a capital expenditure.\n\nYou should find lease comps in your area for restaurants to make sure you\u2019re negotiating the best $ per square foot rent you can. I would only do a NNN lease.\n\nIt\u2019s great you\u2019re direct with the tenant, but if what I\u2019m writing here to you is Greek, you should hire a broker. Alternately, find an experienced commercial real estate attorney in your area and work with them (you\u2019ll need one anyway to work on the lease). Just remember, sometimes the lawyers can be too conservative and kill deals if you let them make business decisions.", "replies": [{"id": "ieopy2i", "text": "Thank You. I\u2019m a residential broker in California and this property is commercial and in a different state. My main objective is to get a solid NNN tenant, so that i don\u2019t need to deal with the property.", "replies": [{"id": "ieorkrq", "text": "Call boefly and see if they have anyone interested.", "replies": [], "depth": 3}, {"id": "iep13zq", "text": "Talk to some commercial retail focused brokers", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ieotei9", "text": "Depends what state you are in\u2026 these are the most desirable locations for cannabis dispensary in some places on the east coast. They will pay premium", "replies": [{"id": "iepjubi", "text": "Hmm= Texas?", "replies": [{"id": "iepkuwp", "text": "Nope", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]