Talk of The Villages Florida - Why sweetbay-not publix

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A quick Google search on types of retail rentals gave me these hits regarding percentage leases or rents:

Understanding Percentage Rent in Retail Leases - Law Firm Kaplin Stewart Meloff Reiter & Stein, P.C. Attorneys Blue Bell, Pennsylvania

http://web.mit.edu/cre/students/faculty/pdf/rlease3.pdf Scroll down to page 4 for info on percentage rents.

Commercial Leases - Average Percentage Rents Charged in Commercial Leases This one has a nice chart showing typical percentage rents

Tenants pay a percentage of sales to the owner of the shopping center. Not profits. This is typical and I am sure Publix does it.

Kudos to Gracie for a great post.

Quote:

Originally Posted by Mack184 (Post 655981)

Bing! Bing!! BING!!! WINNER!!!! None of these companies is going to open and staff a store that is going to be half-full when they can over-pack a current operating location.

Most companies have business percentage goals to reach before they will even consider opening another operation that is near-by to a current store. The Darden Restaurant Group (Dead Lobster/Olive Garden/Longhorn) requires that it's current location be operating CONTINUALLY at 110% of daily expectations before it will even think about adding a new near-by store.

If you have to wait a little bit, they don't care. I don't say this in a mean way. They KNOW you will wait, because you've made a CHOICE.

Whether it's a grocery store or restaurant there are tremendous start-up costs that include building, staffing, operating licenses, insurance, payroll, stocking and all those things that go with opening a new facility. These successful businesses are not going to upset their apple cart by rushing into laying out a few million bucks because some grumpy people on a website decide that they need to open a store. They are going to stick to their long-term plan and do what works best for THEIR bottom-line. Which, BTW..is what SUCCESSFUL businesses do.

So when the time is right for THEM, then you will see a new store.

When the Colony Publix opened in April 2007, there were very few houses south of Bonita Blvd. I would go down there early in the am and my car would be the only one in the parking lot, and I would be the only one shopping in the store. The bag "boys" would be fighting over carrying my groceries to the car.

What happened here in the past is not consistent with your theory that a company is not going to open and staff a store that is only half full.

in the leases that I helped with in Lake Sumter Landing and Spanish Springs there was a clause about TV getting a percentage of the revenues .but only after achieving a significant increase in revenues. If for example the retailer was forecasting to do $500,000 per year in sales, the clause stated that AFTER ACHEIVING SALES OVER $1,000,000 per year, there would be a percentage on the amount OVER THE $1,000,000 ONLY. A new retailer in TV given the opportunity to double their sales....most do not....would have no problem apying a percent to TV when they in fact do double their sales.

Sale MY GUESS (because I do not know) is if thar clause is in all retailers leases, most of them DO NOT PAY A PERCENTAGE.

These are facts well known to the retailer when doing their diligence in determining whether to set up business here or not. So it is not a surprise to any retailer tenant.

I am also sure their are different lease arrangemnts depending who is sitting at the table and how bad TV either wants the business there or just fill the space.

The worn out rumor that many retailers fail in TV because the rent is too high.....is nothing more than the failed retailer saving face. They knew what it takes to be profitable the day they signed the lease.

All the non authentic commentary (usually called rumors) about what store is going where or whether or when is just......rumors and feel good verbiage.

But it is fun to watch :popcorn::popcorn:

btk

Quote:

Originally Posted by billethkid (Post 656212)

All the non authentic commentary (usually called rumors) about what store is going where or whether or when is just......rumors and feel good verbiage.

But it is fun to watch :popcorn::popcorn:

btk

So true. I've learned during my time here that a business will be here when it's here. I've heard of so many businesses coming here that never materialized that I wait until the sign is on the facade before believing it.

Quote:

Originally Posted by mikeod (Post 656232)

The fact is the developer builds houses, golf courses, recreation centers, and country clubs and has not promised anybody a grocery store, more softball fields, bowling alleys, dog parks, churches, etc.

Take what you see at face value, don't expect anything more, and you won't be disappointed. BTW, enjoy the two new jewelry stores.

Quote:

Originally Posted by janmcn (Post 656248)

HE, the developer cannot promise anyone a grocery store or a church because he isn't the grocery store or church. The softball fields are another thing and so is the dog park. Just where would you put them now that everything is alll platted out???? Would you want to live next to a softball field or a dog park?? Would you?

How many times does it have to be stated he is just a developer, he builds to suit as far a commercial tenants are concerned. He can't make them come here, can't cajole them, force them or buy them to come. He can build a building for them if they want to come and he can rent to them.

Quote:

Originally Posted by KeepingItReal (Post 656288)

So we finally really do agree nothing happens here unless there is a profit to be made. No one should blindly trust any business..and there have been a few problems along the way..thanks to those willing to speak up about them the entire community is better off. Doesn't make anyone terrible or dishonest but just goes to show nowhere is perfect.

THERE is no shame in making a profit. That is how this country survives. Free enterprise. Building a better mousetrap and being paid for it and paying the mousetrap makers and the mousetrap trucks to carry it in and the mousetrap cleaner uppers. Then they can feed their families and if you sell enough mousetraps you can be rich.

The only entity that is continuing to run in the red is...

Well we know what it is and I hope it survives.

I'm glad it's a Sweetbay....love Publix, but I also shopped Sweetbay when we stayed for our LSV. I'll shop there!