[pv1313]

Maybe TV are charging too much rent for business owners to turn a profit.

[outlaw]

Originally Posted by pv1313

Maybe TV are charging too much rent for business owners to turn a profit.

Maybe the business strategy is to keep rents high enough to keep some buildings empty. That way, it is technically always growing!

[John_W]

Originally Posted by pv1313

Maybe TV are charging too much rent for business owners to turn a profit.

I posted this a while back on a similar thread. My favorite fast food restaurant, if you can call a sub that, Jersey Mike's tried to go into Brownwood. I've been a regular customer of their shop on 441/27 in front the Target shopping center ever since they opened about three years ago, in fact I ate lunch there today.

A Little more than a year ago Jersey Mike's approached TV about a space somewhere in the new area, first they asked about Pinellas Plaza and were told that Subway had a location there, then they asked about the yet to open Traverse Shopping Center and Subway had a location planned there and TV had given Subway an exclusive non-competition lease.

So then JM looked at BW Square and said we would like about a 1200 sf space. TV's answer, we don't rent under 2000 sf in BW, end of story, no negotiation. A small footprint store that would gross over a million dollars a year is turned away because they would rather keep the store empty for now, then to rent a space to a up and coming franchise that nationally went past 1000 locations about six months ago.

I eat at McAlister's at BW at least once a week and that place is packed for lunch everyday. Not every place needs to be a fancy table service restaurant, McAlister's is proof right there. This is the way Jersey Mike's on 441/27 looks like everytime I go there.

[dadspet]

Brownwood does not have the atmosphere of the other two squares, and the stand terraced seating gives it a cheap stadium feel.

I for one am happy the atmosphere is different then the other squares. I glad they didn't do a cookie cuttered copy of one of the other squares like they did with all the newer CC restaurants.

WOW > the terraced seating is just great. It fits more people in a given area with a lot better view and SHADE for those in that area and even below when the shadow reaches them.
Great job.

Just wish the dance floor didn't have cracks and cattle tracks on it to turn your ankle but at least better then Spanish Springs. Glad they left out the cattle dung piles.

[THUNDERCHIEF]

Each business has to pay a portion of their profit to the villages, kinda like al capone's time in chicago--- the business must be very profitable to support this payment arrangment. Hence you have many business owners that will not come in to the villages.

[graciegirl]

Originally Posted by jimbo2012

if you have big margins or overcharge for your products/services.


If you have a 5,000 sq ft store that's about $15,000 a moth rent.

or $500 a day, do the math.

there are plenty of other choices for half that money

What it's worth is what it goes for. If you have a niche business with not a fast turnover, then the rent is too high. The developers obviously spent a great deal of money on all three squares. Does anyone remember them moving giant live oak trees to the area? The Villages are not alone in charging percentage rent. It is a common business practice. I will post this again.


How Percentage Rent Works in a Commercial Real Estate Lease

And as many savvy people who understand retail have already explained, there are a lot of successful businesses in the three squares able to meet the rent.

I don't know the Morses, but I do know a little bit about business. I watched underfunded niche businesses with big ideas fail a lot.

[jimbo2012]

Originally Posted by graciegirl

What it's worth is what it goes for.

But when it doesn't "go for" it's not worth the money hense dark space after 3 years.

It's only because they don't need the money they can sit on the property.

the new space on rt 44 east of Sparrs is like 12-15 a foot 6 free months, almost all rented I think.


Percentage Rent is not done on most retail space it is done mostly in malls etc.

these squares don't have year round foot traffic.


??????



.

[graciegirl]

Originally Posted by jimbo2012

But when it doesn't "go for" it's not worth the money hense dark space after 3 years.

It's only because they don't need the money they can sit on the property.

the new space on rt 44 east of Sparrs is like 12-15 a foot 6 free months, almost all rented I think.


Percentage Rent is not done on most retail space it is done mostly in malls etc.

these squares don't have year round foot traffic.


??????



.

You must know more than they do. Most businesses have high seasons. Clothing is cyclical. If you have what everybody wants, or what everybody is willing to pay a lot for...well there you are. I am frugal, in fact many call me tight. I don't often shop at the squares. I have always been aware of the high rent at vacation destinations. If you have to pay high overhead, or high wages, the consumer foots the bill.

[Bogie Shooter]

Originally Posted by THUNDERCHIEF

Each business has to pay a portion of their profit to the villages, kinda like al capone's time in chicago--- the business must be very profitable to support this payment arrangment. Hence you have many business owners that will not come in to the villages.

Do you think that concept is unique to TV.....it's not.

[Fredman]

Just remember, he who has the gold makes the rules

[dbussone]

Originally Posted by Fredman

Just remember, he who has the gold makes the rules

So let's not kill the goose that laid the golden eggs.


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[asianthree]

We go to the squares on occasion, I browse. It reminds me when we were kids on vacation. You went into town walked thru the shops and got to spend your few dollars. If I am shopping it's mostly on line. I do miss the banner stores. I did buy from them often. Just not the same when they moved to the sales office.

[ithos]

I bought a house in Brownwood and love it. Less congestion, quick access to Turnpike/I75 and plenty of facilities to choose from. Once the Turnpike exits are built it will be a short commute to Orlando.

If you loving hanging out in a Town Square or shopping then North of 466A is much better .

As far as appreciation, I believe Brownwood will be the best as 44 gets developed. Seems TV is making a big push for Brownwood to be the Grand Entrance.

[dewilson58]

Originally Posted by ithos

I bought a house in Brownwood and love it. Less congestion, quick access to Turnpike/I75 and plenty of facilities to choose from. Once the Turnpike exits are built it will be a short commute to Orlando.

If you loving hanging out in a Town Square or shopping then North of 466A is much better .

As far as appreciation, I believe Brownwood will be the best as 44 gets developed. Seems TV is making a big push for Brownwood to be the Grand Entrance.

I agree.......let it come slowly. Love it.

[kstew43]

empty stores are a tax right-off....