Store - Proactively Look for Tenants or Wait for them to Come?

6 Replies

Hi,

My family owns a small store (~400 SQF) in Tel Aviv, Israel. In the past year, 2 renters concluded their contract before the schedule, and the current (3rd) wants to terminate it as well ahead of time. It's in a good area, where business remain stable, yet in our specific case the cashflow of the businesses didn't hold. 

So, I thought it would be better if this time, instead if listing the store on the local Craigslist and signing the lease contract with whoever agrees first to the terms oft he contract, I'll go to solid businesses, perhaps chains, and check with them whether they are interested. 

Would love to hear suggestions from you guys here :)

Thanks,
Alon

* Apologies for my poor English :)

Originally posted by @Alon Haramati :

Hi,

My family owns a small store (~400 SQF) in Tel Aviv, Israel. In the past year, 2 renters concluded their contract before the schedule, and the current (3rd) wants to terminate it as well ahead of time. It's in a good area, where business remain stable, yet in our specific case the cashflow of the businesses didn't hold. 

So, I thought it would be better if this time, instead if listing the store on the local Craigslist and signing the lease contract with whoever agrees first to the terms oft he contract, I'll go to solid businesses, perhaps chains, and check with them whether they are interested. 

Would love to hear suggestions from you guys here :)

Thanks,
Alon

* Apologies for my poor English :)

 Alon,

If the property is in a good location you should try to go to local business that have a number of locations. In Israel my best experience was with Banks, kupot cholim, tambor, and super-markets. Have you had luck with craigs list in the past finding tenants? I would try some local agents that specialize in the commercial space, with great track records (not just one's with big signs :). 

Yonah and Grant - Thank you very much!

I'll try to reach out to some local businesses as you suggested. Since the asset is pretty small, I think a large chain of coffee shops (i.e. the local version of Starbucks) could maybe work. 

Thanks again!
Alon

Originally posted by @Alon Haramati :

Yonah and Grant - Thank you very much!

I'll try to reach out to some local businesses as you suggested. Since the asset is pretty small, I think a large chain of coffee shops (i.e. the local version of Starbucks) could maybe work. 

Thanks again!
Alon

Aroma?! :)

Alon,

What is the common thread among the 3 businesses? Were they all start-ups? Were they all the same type of business? Definitely figure out what was the problem because prospects will ask what happened to the prior tenant and you want to have  a reasonable response ready.  Do not just sit there waiting for the phone to ring - be proactive and cold-call and talk to successful existing business operators that would be a good fit. You can only squeeze so much money per square foot out of a store location, so successful brick and mortar retailers need to expand through added store count. Good luck.

Damon Di Placido

Arrow Real Estate Services

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