Jerome is very right when selecting a building look for ones that have in suite thermostats. And all inclusive rents meaning that they electric and water is shared across all tenants. you typically will get a better deal on your utility expenses. This is also helpful when negotiation the HVAC overage costs.
While a mall is a good foot traffic draw pay close attention to what Jerome said about the business hours. Most of our coworkers come evening and weekends. That means that I can not do deals with any property that wont grant our members access on their "off hours" For your space your looking at make sure to sus out why the mall has empty spaces. If it is due to lack of current foot traffic this can indicate that you will have a dificult time as well. Malls are a dying breed and typically have extremely high rent rates. Some even have a rent plus Rev Share in their standard leases. I made the mistake one time of choosing a larger space for cheaper rent than a slighly small space with a higher cost but was located directly next to an anchor space (think office depot, office max) So in your case try to be next to a food court or a very strong departments store in the mall. Dont take a large space at the end of the hall. Also consider convenience for your members. Will they have to walk far from their cars to get to you in the mall. Pick a space that makes it easy. Some land lords will push for 50% rev share so will go less. it all depends on how much buildout your asking for and how quickly they can get it back. As I said early only do a rev share if they will accept a Cap. You need room for profit and growth. *J**oshua Webb* *Chief Growth Antagonist*[email protected] *844-455-GROW <18444554769> * *(**4769)* *Growthli.com* <https://www.growthli.com/> On Sat, Jul 7, 2018 at 10:56 AM, Jerome Chang <[email protected]> wrote: > 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 >> <https://lc.chat/now/7173741/> >> >> *WEST: Santa Monica* | 1450 2nd St (@Broadway >> <https://maps.google.com/?q=Santa+Monica+%7C+1450+2nd+St+(@Broadway&entry=gmail&source=g> >> ) >> *CENTRAL: Culver City* | 9415 Culver Blvd (@Main St >> <https://maps.google.com/?q=Culver+City+%7C+9415+Culver+Blvd+(@Main+St&entry=gmail&source=g> >> ) >> *EAST: Downtown LA* | 529 S Broadway >> <https://maps.google.com/?q=Downtown+LA+%7C+529+S+Broadway&entry=gmail&source=g> >> (@Pershing Sq) >> *NORTH: Pasadena* | 680 E. Colorado, Ste 180 >> <https://maps.google.com/?q=Pasadena+%7C+680+E.+Colorado,+Ste+180&entry=gmail&source=g> >> (b/w Lake and Los Robles) >> *SOUTH: Long Beach* | 309 Pine Ave >> <https://maps.google.com/?q=Long+Beach+%7C+309+Pine+Ave&entry=gmail&source=g> >> (@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.
