No. Don’t pivot like that. Negotiate as rev share up front. I’m glad it has its own entrance. Very helpful
Jerome www.BLANKSPACES.con > On Jul 9, 2018, at 9:51 AM, Nanette Mattox <[email protected]> wrote: > > The space we are looking at has it’s own outside entrance so I am guessing > that we could keep that accessible after hours if need be. Good thought on > the HVAC etc after hours. > > Would it be wise to start with negotiating a standard PSF lease (low-ball) > and see how that goes and then if they don’t accept it bring up rev-share? > The LL was very excited about the concept of coworking space since the mall > is struggling and this space has been empty for at least a year. > > Nanette > > From: <[email protected]> on behalf of Jerome Chang > <[email protected]> > Reply-To: <[email protected]> > Date: Saturday, July 7, 2018 at 11:56 AM > To: <[email protected]> > Subject: Re: [Coworking] Landlord Owner/Operator as Manager > > Please be careful with malls. They often have strict opening and closing > hours which might not work with your operations. For example, mall stores > often open at 10 but you might want 8am or 9am office hours. > > Then there’s the shared HVAC in big buildings like this where you have to pay > for extended hours, just like in class A buildings. Often $100-150/hour. > Exorbitant. > > You can negotiate any revenue share. The numbers will be dictated by your > profitability and the landlord’s motivation. The LL might want market rate or > simply break even, if even that, to generate foot traffic in his mall. > > Jerome > www.BLANKSPACES.com > > On Jul 7, 2018, at 8:09 AM, [email protected] wrote: > > Thanks! Rev Share. Thats the term I was looking for! The space we are looking > at is inside a mall that has a lot of empty spaces. Would love to know > exactly what those kinds of numbers look like. > > > On Friday, July 6, 2018 at 4:31:29 PM UTC-4, Jerome wrote: > One key word that you can use that’s standard in the real estate world: > - “rev share”. This is common for retail stores inside malls. The > more you earn, the more rent you pay. > Another is like the hotel industry, where a hotel brand/operator might… > - have a minority ownership stake in the building, but this > requires the hotel to invest some $. > - win a bid to operate a hotel b/c the developer wanted a hotel > from the start. > > So here’s the main difference b/w hotels and coworking: developers want a > hotel from the start, so they need an operator. Office developers mostly > don’t want coworking initially, but now are considering it, which is more of > a fix for their vacancy or rental income after the fact rather than initially. > > Good luck! > > > JEROME CHANG > > talk to us: (323) 330-9505 > chat w/ us: http://www.BLANKSPACES.com/chat > > WEST: Santa Monica | 1450 2nd St (@Broadway) > CENTRAL: Culver City | 9415 Culver Blvd (@Main St) > EAST: Downtown LA | 529 S Broadway (@Pershing Sq) > NORTH: Pasadena | 680 E. Colorado, Ste 180 (b/w Lake and Los Robles) > SOUTH: Long Beach | 309 Pine Ave (@Broadway) - opening Summer 2018 > > On Jul 6, 2018, at 10:25 AM, [email protected] wrote: > > Hi group! I've been following all of your great questions and advice for a > bit now. Thanks so much! > My business partner and I are still in the "planning and searching for a > space" phase. Still so much to learn! > Since we do not have a large amount of capital to put in this business we are > looking at all the options. > Has anyone entered into an agreement with a landlord where they are the owner > and you are the operator/manager? Is it traditionally known by another term? > We keep hearing about such arrangements but would love to hear about a > specific example and what kind of terms might be acceptable. > You can read about the reference to the concept here (the second option in > the article): > https://www.globalworkspace.org/2016/03/three-ways-to-run-a-coworking-space-without-signing-a-lease/ > > > -- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > For more options, visit https://groups.google.com/d/optout. > > -- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > For more options, visit https://groups.google.com/d/optout. > -- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > For more options, visit https://groups.google.com/d/optout. > > -- > You received this message because you are subscribed to the Google Groups > "Coworking" group. > To unsubscribe from this group and stop receiving emails from it, send an > email to [email protected]. > For more options, visit https://groups.google.com/d/optout. -- You received this message because you are subscribed to the Google Groups "Coworking" group. 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