Quote:
Originally Posted by Larryandlinda
(Post 2413043)
This is a great idea and always better to have a locally-owned and managed establishment.
In addition to base rent, doesn’t TV collect an ‘overage’ - a portion of your gross or net revenue. Some, maybe most, small businesses prefer not to have anyone other than their state, nation, accountant, or municipality look at their books. Not that we ever intended to pocket our cash, but we always crossed out the overage clauses.
If we thrived it meant we were anchoring more traffic.
Even one empty business in a center makes for a less inviting shopping, dining, or entertainment atmosphere.
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"Overage" is a common clause in lease clauses in indoor / outdoor malls. I've had approx a dozen retail stores in high end malls, and all of them had an overage clause, meaning if my gross sales were "over" a certain amount, I had to pay the mall owner a percentage of that overage sales, in addition to the monthly rent I was paying. And guess what? I was thrilled to pay it--that meant that my sales that month / year were WAY more than expected!
It's kind of like taxes--no one really likes paying them, but in reality having to pay a lot of taxes is somewhat of a blessing. No tax = no profits. Lots of tax owed means you enjoyed really high net profits.
But your last sentence--"Even one empty business in a center makes for a less inviting shopping, dining, or entertainment atmosphere"--is spot on, and it's a self perpetuating cycle--the more empty spaces means the less shoppers, which means more empty spaces so less and less shoppers, and on & on.
I checked out the Spanish Springs square for the first time in a long time just the other day...strolled around with extra money in my pocket wanting to get rid of some of it but couldn't find a damn thing I wanted to own or eat! Hell, even the Dunkin' Donuts went out of business! If a reasonably priced coffee & donut place is unable to stay make a profit in an area dominated by senior citizens...you know the place is in serious trouble.
There are two massive corner locations (anchor tenants) sitting forlorn & empty--the former World of Beer & the Margarita Republic, now Dunkin'...and more along the main drag that your drive down to get to the Square. The wine place went out of business...it's just sad.
What I really want to know is how the heck that lingerie store stays open--that's the biggest mystery in the world to me. I know TV has a reputation of lots of swingers (what color is the loofah on top of your car?!?!?) & wild sex, but seriously--how many 70+ year old women are really buying sexy lingerie, especially bras that cost something like $80 each!
I'm aware that Spanish Springs has a much older demographic than the newer areas of TV, but there are numerous restaurants in the immediate area that seem to be doing well--LongHorn Steak House, Texas Roadhouse, Miller's Ale House, Applebees, Darrell's Diner, Mission BBQ, & Francesco's--all have busy parking lots out front whenever I drive past, so the problem isn't lack of demand.
The Morse family are billionaires, so I doubt they're staying awake at night fretting about the sad-state of Spanish Springs, but it definitely sucks for those of us that live in the area. I do drive over to Lake Sumpter occasionally (I intentionally misspelled to irritate the spelling/punctuation police on this site!), but no way I'm going to drive all the way to Brownwood to eat or have a drink.
I lived in the Ft. Lauderdale area for nearly 20 years, and this sports bar /restaurant is WILDLY popular and has locations all over South Florida:
Flanigan's - Laid back Family-run Restaurants in South Florida
Really good, reasonably priced burgers, steaks, caesar salads, fish sandwiches, BBQ ribs (actually, everything on their menu is really good), a $6.99 lunch special, and a 50% OFF happy hour 9PM to close. As a bonus, many of their locations have an attached bottle liquor store right next door! And they stay open LATE!
I would kill to have a Flanigan's open in the Spanish Springs area...