All Forum Posts by: Colton T.

Good evening.

Looking for some wisdom / experience from someone who has leased up office suites to various tenants in small, historic, boutique environment or something similar.

What kind of issues can come up either between the tenants themselves or in dealing with multiple leases under one roof? Would love to hear your success stories and horror stories.

Thanks

Colton

Good evening,

I'm leasing out a 2000 SF shell retail space on downtown strip that's been used for retail for the past 15+ years. Stripped down to shell since last tenant. It's useable with minimal build-out as-is but any long term tenant will likely want to bring it to a more cosmetically pleasing state and spend a little money doing so.  What is an appropriate Tenant Allowance to Gross Rent Ratio for a 4-5 year lease (in terms of range)?  

Lastly, should this % be different if we decide to lease to a restaurant on a longer term (7-8 years)?

Currently sits as concrete floors and concrete walls, with fairly dated electrical / lighting and ceiling tiles. 

Thanks in advance for the help.

Awesome. Thanks, Payton. 
I'd love to talk about any practical advise someone may have regarding honing in on the best product type from an investor's perspective in this area.  Weighing in on both the "new construction" aspect of it, and the location in proximity to both residential and retail, how could I try and find out the answer to what will be the best use of the land?

Thanks!

Thanks, Greg. These are great questions. Some of them, I have the answer to. Others, more of an estimate. I suppose I need to employ some tools to get a definitive answer prior to deciding our product type.  Mixed Use (Retail / Residential) is actually the ideal product we would like to build, and based on the surrounding, I believe is the best choice for the land. It's adjacent to a townhome district and neighbors historic craftsman styles homes on the strip. It's also on the "downtown side" of the tracks, just outside of multiple subdivisions that enter town when they cross the railroad.

Would love to discuss things further with you. I see that you offer courses / info on this type of situation. It may be something to look into.

I'm new to development and would like to sponge off of your wisdom regarding this situation:

I have 3.8 acres of raw land on the edge of a small/medium size town historic downtown strip (90k population). The strip has lots of retail / restaurants and as it gets closer to the edge, turns into historic housing (10s-20s craftsman homes). Many of which are converted to office spaces now.  This land is on the side of that. It's the first piece of land you pass pulling into downtown and cross the train tracks (from one direction). It has good frontage (about 475 ft) and is sort of triangular in shape, going from narrow to wide as you drive past it. 

To me, the most exciting (for the city and for the owners) option would be some retail space, maybe 17,500-20,000 sq ft of rentable space for tenants such as a restaurant or sandwich shop, a dentist/salon, a boutique gym, niche retail, etc.  Also, I have other retail properties and experience managing them, so the finished product wouldn't be out of my comfort zone. What would be the best way to go about figuring out how well-located this land is for something of that product type before getting to far along?

As I said, frontage is good. Lots of traffic all day on the road coming in and out of town. However, it's on the edge of the strip and doesn't touch the other retail products, there is housing between us and the strip, so this is my main reason for questioning the product type.

I appreciate your ideas and feedback.

Thanks,

Colton