[Bogie Shooter]

(As appeared in The Villages Daily Sun)
Talking with Scott Renick
Renick is The Villages director of commercial development


Posted: Wednesday, May 17, 2017 3:00 am | Updated: 3:07 pm, Wed May 17, 2017.
By DAVID R. CORDER
Daily Sun Senior Writer

Scott Renick has worked with The Villages Commercial Development Division for 11 years, and the last eight years as its director.
He and his staff are responsible for recruiting new businesses to the community, negotiating commercial leases and determining whether a prospective tenant has the long-term wherewithal to serve
the residents.
Sometimes, however, businesses fail; and, over the years, Renick has heard a number of false rumors about why a certain business failed.
Renick talked with the Daily Sun about one of the latest rumors, as well as dispelling some of the most common myths he has heard.

What’s the story on the latest rumor about The Villages forcing Crispers to close its restaurant in Southern Trace Plaza by increasing its lease payment?
The truth is they approached us about the ability to terminate their lease early. They called us and asked to get out of the lease. Them approaching us to find a replacement spoke to what their long-term plan was, at least for this store. So, we started our marketing efforts and fortunately discovered Habaneros Mexican Grill. It was fortuitous timing. We found something that worked for both parties, and now we’ll have a seamless transition with Crispers closing and the opening of Habaneros as soon as possible afterward.*

Is this the type of unfounded information you heard when Perkins Restaurant & Bakery closed its store at Buffalo Ridge Plaza?
Yes, Their lease expired, and they opted not to renew it at any rate. Although I can’t offer any details, we would have
considered renegotiations.

What about the claim The Villages charges higher-than-average market rates for rent?
That’s another myth; that The Villages charges too much rent for businesses to be able to survive. Every business knows the terms of their lease before signing a contract, and has included that in their pro forma. Any rent escalations are defined from the outset and are either fixed or tied to the federal Consumer Price Index. So there are no surprises on either end. There are properties within The Villages that require higher rents than others, but also many properties in the community that we do not own charge higher rents than we do.

What’s the No. 1 myth being perpetuated about commercial leasing in The Villages?
That every business in The Villages pays to The Villages Developer a percentage of every dollar they take in. I have heard this from the first day, and it is completely false. Some businesses do pay a percentage of sales only after they exceed a certain threshold that is predetermined and agreed upon. It’s a clause in their lease that kicks in only after sales reach a certain threshold; so it’s pre-negotiated. This is a common practice in retail leases nationwide. Within
The Villages, only 7 percent of our businesses met this criteria last year.

What about the claim that The Villages’ leasing rates discourage businesses from expanding into the community?
That is patently false. Rent is a single line item in every tenant’s budget, and a small factor in a broad evaluation of the investment to open a business. We’ve all been to locations where businesses are thriving while paying literally exponentially more rent than in The Villages. There are dozens of reasons why a particular business might decline locating here. Some have certain requirements for population or other specialized needs that we cannot control or satisfy. Many others are based on misinformation or preconceived biases about our market, which keeps my team working each day to educate and change people’s minds.

Is there any other disconcerting myth that troubles you?
That The Villages doesn’t care about vacant spaces.
The Villages’ intention is to own indefinitely its commercial properties in the community. While we have no shortage of businesses interested in opening a location, turnover is not good for anyone involved and ultimately costs money. So we are careful to analyze every aspect of a proposed business to hopefully place those with the greatest chance for long-term success. In doing so, we would rather carry a vacant space than put in a business with a marginal potential, only to see it fail.

[pauld315]

I wonder what they are charging per sq ft on average. I have a friend who is a veterinarian in Cary NC. Until recently, he rented 1564 sq ft in a strip mall. I was surprised when he told me he was paying 4400 a month for the space. That includes TICAM which is his share of taxes, insurance and maintenance split with all the other leasees in the shopping center. Also, all upkeep specific for his space, he paid, such as an air conditioner needing replacement. He also had automatic increases on his lease every year based on some index. The owner of this shopping center essentially pays for nothing after he bought the it. I thought that was expensive but I now think it is the norm in this area. Since TV has a much more captive audience, I would guess their rents are at least as high.

[GaryW]

A Myth always hides another Myth.... Just Saying. Especially if it comes from a good source of a Myth
Might Be like Robin Hood going to the king and telling him I hear you want all the Money, and the King say no just a Myth, just a good part of it.

I know a business that has been in The Villages a very Long time, and he tells a different story... alot more involved than just the money I knew this cat when he was knee high to a grass hopper. He has no reason to tell a MYTH.. LOL

A better myth would be to watch the video series on building Brownwood and hear the developer say it is not about money in TV. MYTH or NOT?? Might need to call the Myth Busters..

[rubicon]

There is one obvious conclusive point here and that is who owns all the commercial property in TV? Do you suppose that dampens competition?

Another impression made was an interview with the Daily Sun clears up any myths.

i recall in one of the recent VHA voices we were told if we wanted answers to any of questions just read what's in the Daily Sun

it is not my intent to disparage the Sun because it does well for its intended purpose.

But honestly we all know there is only one cattle baron in town

[jeriteri]

The Villages Development is a multi billion dollar venture which, in my opinion, is the best managed development I have ever seen anywhere. To try to pinpoint an area in which they are in it for the money is ridiculous. If you are a resident, just look around and see what you are enjoying because of their management. Do you have landscaping second to none. Entertainment, second to none. Recreation, second to none. There's golf courses, recreation centers, town squares and activities available no where else in the world. The roads, landscape maintenance, building maintenance and waters that are beautiful. Medical EMT that stand ready to serve you, I see them sitting in their vehicles ready to take off to save your lives. Yes you pay a HOA but will pay that anywhere and won't get a fraction of the amenities. Don't worry about how much the management is making on rent, How ridiculous, just live your lives and enjoy this beautiful area of which you are Blessed with.

[karostay]

Simple whats the rate per SQ FT..Don't need line item excuses

[ColdNoMore]

LOL

I'm sure there is no self-serving purpose of the Director of The Villages Commercial Development Division, stating that none of the businesses leaving are doing so...because the lease rates are too high.

Nahhh, nothing here, because Renick and the Daily Sun have said so.

[Lovey2]

Nevermind, had to erase my response and SMH. Just don't like when people tell you what should be important to you or not. Mea Culpa.

[graciegirl]

Originally Posted by Bogie Shooter

(As appeared in The Villages Daily Sun)
Talking with Scott Renick
Renick is The Villages director of commercial development


Posted: Wednesday, May 17, 2017 3:00 am | Updated: 3:07 pm, Wed May 17, 2017.
By DAVID R. CORDER
Daily Sun Senior Writer

Scott Renick has worked with The Villages Commercial Development Division for 11 years, and the last eight years as its director.
He and his staff are responsible for recruiting new businesses to the community, negotiating commercial leases and determining whether a prospective tenant has the long-term wherewithal to serve
the residents.
Sometimes, however, businesses fail; and, over the years, Renick has heard a number of false rumors about why a certain business failed.
Renick talked with the Daily Sun about one of the latest rumors, as well as dispelling some of the most common myths he has heard.

What’s the story on the latest rumor about The Villages forcing Crispers to close its restaurant in Southern Trace Plaza by increasing its lease payment?
The truth is they approached us about the ability to terminate their lease early. They called us and asked to get out of the lease. Them approaching us to find a replacement spoke to what their long-term plan was, at least for this store. So, we started our marketing efforts and fortunately discovered Habaneros Mexican Grill. It was fortuitous timing. We found something that worked for both parties, and now we’ll have a seamless transition with Crispers closing and the opening of Habaneros as soon as possible afterward.*

Is this the type of unfounded information you heard when Perkins Restaurant & Bakery closed its store at Buffalo Ridge Plaza?
Yes, Their lease expired, and they opted not to renew it at any rate. Although I can’t offer any details, we would have
considered renegotiations.

What about the claim The Villages charges higher-than-average market rates for rent?
That’s another myth; that The Villages charges too much rent for businesses to be able to survive. Every business knows the terms of their lease before signing a contract, and has included that in their pro forma. Any rent escalations are defined from the outset and are either fixed or tied to the federal Consumer Price Index. So there are no surprises on either end. There are properties within The Villages that require higher rents than others, but also many properties in the community that we do not own charge higher rents than we do.

What’s the No. 1 myth being perpetuated about commercial leasing in The Villages?
That every business in The Villages pays to The Villages Developer a percentage of every dollar they take in. I have heard this from the first day, and it is completely false. Some businesses do pay a percentage of sales only after they exceed a certain threshold that is predetermined and agreed upon. It’s a clause in their lease that kicks in only after sales reach a certain threshold; so it’s pre-negotiated. This is a common practice in retail leases nationwide. Within
The Villages, only 7 percent of our businesses met this criteria last year.

What about the claim that The Villages’ leasing rates discourage businesses from expanding into the community?
That is patently false. Rent is a single line item in every tenant’s budget, and a small factor in a broad evaluation of the investment to open a business. We’ve all been to locations where businesses are thriving while paying literally exponentially more rent than in The Villages. There are dozens of reasons why a particular business might decline locating here. Some have certain requirements for population or other specialized needs that we cannot control or satisfy. Many others are based on misinformation or preconceived biases about our market, which keeps my team working each day to educate and change people’s minds.

Is there any other disconcerting myth that troubles you?
That The Villages doesn’t care about vacant spaces.
The Villages’ intention is to own indefinitely its commercial properties in the community. While we have no shortage of businesses interested in opening a location, turnover is not good for anyone involved and ultimately costs money. So we are careful to analyze every aspect of a proposed business to hopefully place those with the greatest chance for long-term success. In doing so, we would rather carry a vacant space than put in a business with a marginal potential, only to see it fail.

Thank you Bogie.

The Villages ARE in it for the money. That is fine with me. I am a Capitalist.

I think they do a great job here and I like that the Morses do a good job with their big, BIG development. Many of us moved from lovely well maintained areas around the country and even Florida. I am not angered by financial success and I am not jealous of it. I don't think all rich people are good are all good people are rich. I think we are lucky to live here and I am glad this is the place we chose to live out our years.

I read posts above from people whose philosophies of life I am familiar with from having read their opinions on this forum for many years.. They haven't waivered and neither have I.

[Lovey2]

Originally Posted by Lovey2

Nevermind, had to erase my response and SMH. Just don't like when people tell you what should be important to you or not. Mea Culpa.

Maybe I need to explain, now that I can't back out. I wish there were simply a delete button! I meant: a person gets on and expresses an opinion, or delivers some "facts". Agree, disagree, or post your own opinion, just don't say why are they worried about that, this place is so beautiful, just go live life....which has nothing to do with nothing! And it trivializes someone else's interests. I don't care how much $$ the Morse's make. Their idea, their funds that back it, I get to live here and enjoy it...so be it. It is interesting, however, to try to gain some insight in to how they lease their properties, or don't. To me. Now...I will go outside and enjoy the amenities...

[graciegirl]

Originally Posted by Lovey2

Maybe I need to explain, now that I can't back out. I wish there were simply a delete button! I meant: a person gets on and expresses an opinion, or delivers some "facts". Agree, disagree, or post your own opinion, just don't say why are they worried about that, this place is so beautiful, just go live life....which has nothing to do with nothing! And it trivializes someone else's interests. I don't care how much $$ the Morse's make. Their idea, their funds that back it, I get to live here and enjoy it...so be it. It is interesting, however, to try to gain some insight in to how they lease their properties, or don't. To me. Now...I will go outside and enjoy the amenities...

Every day is precious. I have been rude to people on this forum who have so many good qualities. I have been wrong so many times. None of us know what tomorrow brings. We need to enjoy this beautiful day.

You are right Lovey. So very right.

[Lovey2]

Originally Posted by graciegirl

Every day is precious. I have been rude to people on this forum who have so many good qualities. I have been wrong so many times. None of us know what tomorrow brings. We need to enjoy this beautiful day.

You are right Lovey. So very right.

Thanks... Every now and again, I get it right!! Hahaha...
Have a great day and a happy weekend....not that weekends mean a lot to us old retired folk!

[NotGolfer]

It's true that everyone has an opinion....that said though...it is beyond me why "some" are looking for the dark side of things (always) re: our community. Such as, the developer is "out to get us". Yet, they purchased a home here, join the activities yet they blast the "hand that feeds them" (so to speak). I don't get it. I, for one LOVE this community! Every community has issues...none will be perfect..but this one out-runs any others we've lived in, in the past.

[Mikeod]

I'm not sure how the rental contracts between the developer and a business are constructed is any of our business anyway. If the terms were so far out of line it would not benefit the developer or the residents if the spaces are empty. Retail space has a value that can change. Think about the value of space in Lake Sumter in 2005-6 when it first opened and there were fewer neighborhoods around. Compare it to now. Certainly the value has increased and a smart businessman will consider that in a new lease or renewal. It is up to the lessee to determine if the terms are OK. There are some long term tenants in Spanish Springs and Lake Sumter that have added locations in Brownwood, so the terms can't be that onerous.

[billethkid]

Thanks for the post Bogie Shooter.

I can say from personal first hand knowledge in more than one commercial lease signing/renewal here in TV that your posted information is pretty accurate.

Nobody signs a lease without knowing what the rental amount will be for each and every one of the years....usual 5 year lease. And most include an option clause for one or more 5 year renewal options.

Could the rent be increased when exercising a future option? Of course. Would it be so substantial it would drive one out of business? I suppose it could happen, however, very unlikely.

Several years back when comparing the rental costs here in TV to what local rates were in non Villages owned property.....for example in the "Target" shopping center and one of the malls close by....the rates were all in the same ball park. As a matter of fact the rates in the "Target" shopping center were the highest.

All were such that the only real decision to be made was location.

There is no reason for the developer or those who manage their business segments to have to lie about what they do or how they do it or why they do anything.

We all know opinions do vary.