Quote:
Originally Posted by jimbo2012
"[COLOR="Blue"]This is a common practice in retail leases nationwide.[/COLOR]"
That really isn't correct, over the years we have leased over a dozen properties none had a % of sales clause in them in NY.
Now franchising nationwide and discussing locations with potential franchisee none have such clause.
Percentage leases are commonly executed in retail mall outlets.
TV is not a mall!
TV has an issue with a sales dip in the summer for a retailer.
When I first moved here I inquired about the rent for a store, it's high (without normal concessions) don't let anyone tell you it's not.
For example it's lower over by HD rt 441 with tons more
shoppers.
my .02
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Did you lease in destination malls or in strip malls?
If you have a high traffic, high turnover business the volume can support the higher rent, but if you have a niche business, you had better be very careful of your bottom line. That's just how it is. People charge more for rent because they can charge more. In the past in DESTINATION malls that attracted droves of people, high rent and a portion of sales after a certain point used to be common. The same in vacation destinations. it isn't illegal, immoral or unethical. It is what the traffic will bear.