Quote:
Originally Posted by SABRMnLgs
I have never been a business owner so perhaps I am speaking out of a cocked hat, but I have been reading a lot of posts that blame "rent" (yeah, a 4 letter word) as one of the reasons a business closes.
Again having no idea about a business, may I offer this suggestion. Build your own place. You pay only for the land and construction. Then the place is yours, lock stock and soda fountain.
I have read where a number of doctors offices were built by them and their partners. They answer to no one except possibly their partners.
How bout this. 5-6 business owners get together and purchase a parcel of land. Say that piece of property on 466 by the Fresh Market place. They pool their money, buy the property and build on it to suit themselves. They bought it, they own it, they build it. Nothing to answer for from the Villages as the property is now their's do with whatever (as long as they are in state code).
There would be a large initial outlay of monies, yes, but no rent and no one with their hand out looking for a "deal" on rent. Eventually, it would pay for itself if the business were run properly. Or am I being too logical and simple?
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SABR,
You are being logical - but, yes, also a bit oversimplified. Yes, the landlord makes a profit on properties rented. But he (sorry business gals) also assumes liability for property damages and risks. Some of this can be passed on to the tenant, but...
The main issue is the old time value of money. Let's assume you and 4 colleagues have $500,000 to buy a parcel of land to build a store/restaurant. By investing in the business, you lose the opportunity of investing it elsewhere. If you have to borrow the money, that may cost as much over time as rent. And you have the risk/liability.... And only part of your cash outlay is deductible for taxes.... And you have to hire someone to manage the property...
Most of the chains and big box stores lease rather than buy. Why? For the reasons I outlined above plus leasing gives them the ability to walk away from a non-profitable location and they are in the retail/food service business, not the real estate business.
Personally, I would like to see TV offer some discounted rates at their properties on the squares. NOT because I think the developer OWES it to us (I DON'T), but because I think it is good business sense. Having so many stores vacant is an eyesore, it detracts buyers and some revenue is better than none.
k