Well, I am a commercial broker and currently I am representing a Landlord (who is a pain in the %*#!@) on a 3-story new construction development. We have 7,500 SF ground floor retail + 2nd & 3rd story 7,500 SF each community use facility.
A few months back we farmed a daycare facility to take the 2nd floor.. they were real hard negotiators but the LL liked them and saw their business would be great for the community, etc. Months of going back and forth with the lease (they hadn't hired a lawyer yet; were doing their own revisions) we finally settled on terms and they gave it to their lawyer. Weeks of f/u from the LL's attorney he reaches out for me to f/u and the Tenant's lawyer was absolutely rude and the prospective Tenant would not return calls. So now I begin approaching other daycare/nurserys and presented them the already negotiated lease. Great terms btw, full LL build out, close to 6 months rent concession/6 months reduced rent.
I now find a national Tenant (works for the company itself, never disclosed exclusive representation, etc) and they want a bigger space: 7,500 SF 2nd Floor + whatever is left on the ground for the toddler division.. so now I have 3,600 SF left on the ground + the 7,500 SF = 11,100 SF
Lets say we are asking $80 psf nnn for the ground + $2 psf tax + $2 psf cam
and the 2nd - 3rd flor we are asking $50 psf nnn + $2 psf tax + $2 psf cam
The original negotiated we gave him was for $48 psf gross (entire 2nd floor). He sends me a LOI today after our conference call with the developer and offers $44 psf gross for the 11,100 SF + 1 year rent concession and to split my commission with XYZ Realty, LLC. I believe that is his company and is using this to make a nice chunk of change off the deal.
I know its not good to be greedy but this guy is coming in here with some set of balls.
Since the steel frame is going up now, we told him to give him his plans if we agree on the lease and we would incorporate them to speed the C/O process for him and make it easier for them to set up. He's asking for the LL to pay him $1 psf to review his plans + $6.50 for FF&E + the build out cost of $90-100 psf. I never heard of any of thoss fee's except the build out fee's (equiment & labor)
The reason I am on a rant is b/c the conference call was earlier this morning and he had everyone anxious to conclude the deal b/c he wants to sign next week and I receive the LOI and I was like W#%@!# THE @%!*$K
What a crock of ish today was. I know in business we can't get emotional and take things to the heart but this project has been putting a drain on me and I think I need a vay cay lol. Sorry for the long post everyone.
/off rant. :smx8::smx19:
A few months back we farmed a daycare facility to take the 2nd floor.. they were real hard negotiators but the LL liked them and saw their business would be great for the community, etc. Months of going back and forth with the lease (they hadn't hired a lawyer yet; were doing their own revisions) we finally settled on terms and they gave it to their lawyer. Weeks of f/u from the LL's attorney he reaches out for me to f/u and the Tenant's lawyer was absolutely rude and the prospective Tenant would not return calls. So now I begin approaching other daycare/nurserys and presented them the already negotiated lease. Great terms btw, full LL build out, close to 6 months rent concession/6 months reduced rent.
I now find a national Tenant (works for the company itself, never disclosed exclusive representation, etc) and they want a bigger space: 7,500 SF 2nd Floor + whatever is left on the ground for the toddler division.. so now I have 3,600 SF left on the ground + the 7,500 SF = 11,100 SF
Lets say we are asking $80 psf nnn for the ground + $2 psf tax + $2 psf cam
and the 2nd - 3rd flor we are asking $50 psf nnn + $2 psf tax + $2 psf cam
The original negotiated we gave him was for $48 psf gross (entire 2nd floor). He sends me a LOI today after our conference call with the developer and offers $44 psf gross for the 11,100 SF + 1 year rent concession and to split my commission with XYZ Realty, LLC. I believe that is his company and is using this to make a nice chunk of change off the deal.
I know its not good to be greedy but this guy is coming in here with some set of balls. Since the steel frame is going up now, we told him to give him his plans if we agree on the lease and we would incorporate them to speed the C/O process for him and make it easier for them to set up. He's asking for the LL to pay him $1 psf to review his plans + $6.50 for FF&E + the build out cost of $90-100 psf. I never heard of any of thoss fee's except the build out fee's (equiment & labor)
The reason I am on a rant is b/c the conference call was earlier this morning and he had everyone anxious to conclude the deal b/c he wants to sign next week and I receive the LOI and I was like W#%@!# THE @%!*$K
What a crock of ish today was. I know in business we can't get emotional and take things to the heart but this project has been putting a drain on me and I think I need a vay cay lol. Sorry for the long post everyone.
/off rant. :smx8::smx19:
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