 |
Business Directory |
 |
|
|
|
|
|
|
|
Coupons |
|
|
|
|
|
|
 |
Classifieds |
 |
|
|
|
|
|
| | Author | Messages | |
utahjazzfan
Posts:96
 | | 09/29/2007 8:02 AM |
 Alert | | I heard from a source that Ramsey's was paying $35,000 per month to lease that space. All said and done at the end of the month, he was losing around $10,000. He didnt pay rent for 4 months to try and recover. No wonder he went down. If Barclays and others are going to charge that much to rent a spot, I dont see many new business rushing to Maricopa. Ridiculous!! | | | |
| | twostep23
Posts:1680
| | 09/29/2007 8:18 AM |
Alert | The rent will be as much as the tenants will allow. If he wants $35k and someone is willing to pay that then they'll get it. If not then he'll have to lower it down to what people are willing to pay.
Either way you can check out the other thread for details. This horse was beaten well and explored from every angel there. | |
Senior Member
Posts: 4625
Joined: Feb 2006 | |
|
| | DesertNewbie
Posts:531
| | 09/29/2007 8:31 AM |
Alert | From the article on the closure, posted on this site 8/24/07
Harkness said it cost approximately $100,000 per month to operate the establishment, which was generating $90,000 in monthly revenue. “I just couldn’t afford to continue.”
Later in the same article...
Harkness wished whatever business takes his place success but cautioned that his experience could be duplicated. “I was the lowest in the center at $24 bucks (per square foot rent), and you know they’re going to raise it.”
Was his space 1458 sq feet? If so, then you're right...that was his rent.
X-treme Fitness is in the same boat and a big article was done in the Communicator about this problem a few months back. When these business owners agreed to these rent amounts, it was based on the city's population projections, which have not come to fruition. Ramsey and others thought there would be far more Maricopans here by this time to spend enough money sustain these expenses.
It's nobody's fault really, but the way to correct it is to update the projection studies and lower the rents accordingly, or this (the closures of Ramsey's and C-21) is just the beginning of the end.
| | | |
|
| | twostep23
Posts:1680
| | 09/29/2007 8:35 AM |
Alert | | And when they can't rent it out at $24 then they'll just have to lower it to a more reasonable amount. | |
Senior Member
Posts: 4625
Joined: Feb 2006 | |
|
| | DesertNewbie
Posts:531
| | 09/29/2007 8:36 AM |
Alert | | Perhaps, but what if they lure some unsuspecting chump and show him the same unfilled projections? He might think $24/sq. ft. is a steal. | | | |
|
| | twostep23
Posts:1680
| | 09/29/2007 10:00 AM |
Alert | He'll be closing the doors quickly cause he doesn't have that great of a business plan to get all the needed information that is available free of charge from the city by just asking.
One of my first questions would be what is the turn over rate. If they won't or can't give you a straight answer then RUN. | |
Senior Member
Posts: 4625
Joined: Feb 2006 | |
|
|  | LeonPotter
Posts:390
| | 09/29/2007 12:15 PM |
Alert | <div class='NTForums_Quote'>Posted By twostep23 on 09/29/2007 8:18 AM
The rent will be as much as the tenants will allow. If he wants $35k and someone is willing to pay that then they'll get it. If not then he'll have to lower it down to what people are willing to pay.
</div>
Right on!!! However, the challenge is the entrepeneurs themselves. They believe in themselves(good), they believe in their products or services(good), the believe they are different(good and not good). It's good because that's what sets them apart. They are visionaries; they see what others don't see(Disney, Trump, Gates,Buffett). The downside to this is they think they can beat the odds, but they aren't in the position from the beginning to succeed.
It's an uphill battle from the start to break EVEN , let alone profit. If something doesn't go according to plan(this is life) they are stuck. Are there people/businesses that succeed this way. Yes, because by sheer numbers a few will succeed while the majority won't. But, it doesn't have to be an uphill battle.
If one has the patience, it can be done. It may seem longer, but the odds of succeeding are more in favor. It is easier to handle any failed "projections."
Afterall, it is human nature. People couldn't resist waiting until they were in a better position to buy homes in fear of losing out.They were counting on flipping, renting, rates to drop, pay increase at work, home price to increase to refinance, etc. Then when those "projections" didn't happen..........
The key isn't to have the right projections(no one has the market cornered on crystal balls). The key is to be in the position of strength from the beginning.If one isn't there then get there. The time will come.Those that aren't in a strong position will be wiped out by a storm. Those that are in a strong position will continue forward and the storm will bring opportunities as it passes.
One thing I go by; I can't control the what,when, or how something comes in, but I can control what, when, and how it goes out. | |
You may remember this from the original 85239:
Proverbs 22:7
The rich ruleth over the poor and the borrower is servant to the lender. | |
|
| | Sr10Ly
Posts:1
| | 10/09/2007 7:54 AM |
Alert | | For those that don't know how to calculate lease rates on commercial centers the rate of $35.00 per foot is a yearly lease rate. If the suite is 2,000 sq ft then the monthly amount paid is $5,833 per month plus cam charges that are paid quarterly. Lease rates are almost always quoted in yearly amounts per foot. Developers charge what the public is willing to pay. Our rents are where they are because people are willing to pay that rent amount. | | | |
|
| | Sinbad
Posts:3019
| | 10/09/2007 1:20 PM |
Alert | <div class='NTForums_Quote'>Posted By Sr10Ly on 10/09/2007 7:54 AM
For those that don't know how to calculate lease rates on commercial centers the rate of $35.00 per foot is a yearly lease rate. If the suite is 2,000 sq ft then the monthly amount paid is $5,833 per month plus cam charges that are paid quarterly. Lease rates are almost always quoted in yearly amounts per foot. Developers charge what the public is willing to pay. Our rents are where they are because people are willing to pay that rent amount.</div>
Than your rents suck! and it shows that the barclay group are out to get theirs and not to help a city grow. | |
Just doing it one day at a time. Change is good and it should be looked upon as an improvment! not a problem.
______________________________________
***************************************
San Diego Super Chargers! GO!!!
Joined old forum March 2006
Post count: 3068 + these | |
|
| | alanf
Posts:1400
| | 10/10/2007 7:16 AM |
Alert | | That kind of goes without saying Sinbad. Barclays is doing nothing wrong. They are all about investments and returns. They are global, not local. If businesses were to refuse to lease at those prices, the property prices would come down. Are the current businesses trapped? Possibly. It sucks, but it's business. Interested to know what that little breakfast place that took the spot from On The Go is paying now. | | | |
|
| |
| | You are not authorized to post a reply. |
|
| |
ActiveForums 3.6 |
|
|
|