Talk of The Villages Florida - View Single Post - COSTCO coming to the area! Really!
Thread: COSTCO coming to the area! Really!
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Old 09-09-2020, 08:29 AM
Stu from NYC Stu from NYC is offline
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Originally Posted by FredJacobs View Post
The area West of Brownwood, on FL 44, now occupied by the Brownwood Hotel, was supposed to be for a shopping mall. One of the anchor stores was rumored to be Costco. As you may know, part of the Developer's calculations in how much rent to charge includes his becoming a "partner" by fixing rent as a percentage of the store's income - I'm not sure if it is gross or net income. This is fairly common in New York for retailers who pay rent. Stores like Costco and WalMart work on very low profit margins (I used to sell to WalMart and they work on 10% profit and cannot afford to take in a "partner." They will always build on land that they own.
Lots of vacant land around here would think that if Costco or other stores wanted to be here they would buy their own property.