Amen!
Going out of business.
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Last: 8 yr ago by frito bandito
Seriously! My dad's store was in the Bed Bath and Beyond center before it was renovated. The strip center housed local barbers, local merchants and services. The new owner quadrupled the rent. Local folks moved out big chains moved in. Same thing across the street before Kohls and Specs moved in. Daddy moved to Bryan.
I think the owners of these strip malls raise rent so high that the only thing that can move in are national chains. Bed Bath and Beyond, Specs or Kohls can easily eat rent increases but, the family owned business cannot. They would rather have an empty storefront and "wait" out the right tennant. There is not a shortage of commercial space. This is price gouging at its most egregious. Couple this with the "I can get it cheaper at..." It is a wonder that mom and pop still exist at all.
I think the owners of these strip malls raise rent so high that the only thing that can move in are national chains. Bed Bath and Beyond, Specs or Kohls can easily eat rent increases but, the family owned business cannot. They would rather have an empty storefront and "wait" out the right tennant. There is not a shortage of commercial space. This is price gouging at its most egregious. Couple this with the "I can get it cheaper at..." It is a wonder that mom and pop still exist at all.
Not price gouging, it's highest & best use. I don't begrudge the owners/landlord for trying to make a buck.
Still sad though and I'll miss Hobbytown. Wish they would just move to outskirts and incorporate an RC track and big train display or somthing.
Still sad though and I'll miss Hobbytown. Wish they would just move to outskirts and incorporate an RC track and big train display or somthing.
I have a hard time with highest and best use when there are lots of empty storefronts in that strip. 1/2 rent x 12 = a whole lot more than 0 rent x 12. Any cash flow is better than no cash flow....
And some of these strip malls may be trying to keep undesirable businesses from renting with the higher prices.
So you are saying you are not a fan of tattoo parlors, pawn shops and massage parlors?
Lawton, Killeen, San Antonio, Columbus and FayetteNam say hello.
Lawton, Killeen, San Antonio, Columbus and FayetteNam say hello.
I agree with Frito. It would be a lot better to actually have some stores than to have a bunch of empty spaces where stores used to be. A slight raise in rent is understandable, but when places are doubling to quadrupling the rent, it us not surprising that so many places are opting to close their CS locations (or only location if they are completely local).
Am I right in thinking that the "expert" KBTX interviewed is from a real estate developer / landlord that is probably one of the ones that are raising rents? I know I have seen their name on store sites for rent but am not clear whether they are the landlord or are real estate agents and someone else is setting the prices.
Am I right in thinking that the "expert" KBTX interviewed is from a real estate developer / landlord that is probably one of the ones that are raising rents? I know I have seen their name on store sites for rent but am not clear whether they are the landlord or are real estate agents and someone else is setting the prices.
quote:Yup, saw something similar back in the day at POM. They increased rent and ran off a bunch of stores.
I have a hard time with highest and best use when there are lots of empty storefronts in that strip. 1/2 rent x 12 = a whole lot more than 0 rent x 12. Any cash flow is better than no cash flow....
quote:
I have a hard time with highest and best use when there are lots of empty storefronts in that strip. 1/2 rent x 12 = a whole lot more than 0 rent x 12. Any cash flow is better than no cash flow....
Is this something they can write off on their taxes?
Not a tax savvy accounting type person, but the owner can depreciate capitalized expenses. My guess is that the Culpepper Plaza center was paid for decades ago, and it is a cash cow for its owners (I think still Culpepper family).