Finding Retail Space To Lease
Hi all,
I have an idea for a retail shop, that is bascically a slightly different kind of coffee shop.
I would like to open it on New York University's campus. I know that NYU owns many of these buildings and I am figuring out how to contact them.
However, how do i figure out if there is space available or soon to be available in the area I am looking at. Any ideas guys?
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Doob
Generally there will be a property management company, or realtor that is paid to handle the commercial properties. Try to find out who it is. If there is going to be a vacancy soon, they will know about it. you could even ask the people currently leasing space where you are looking. This will also give you a good idea how they are to their tennants as well.
Good Luck,
Jeff
Hello Doob,
Your idea wouldn't happen to combine coffee and future CREI people? what a combo! Happy New Year and good luck!
Doob:
Good luck in the Village. NYU is my alma mater!
NYC real estate is unlike any other in the country. As stated above, you can track down agents (normally not realtors in NYC) if you see signs in the window.
Or find the owners by scanning records at city hall (good luck!!!)
Just be aware of a few things: unions, licensing, Bloomberg and a list of other hurdles can trip you up, even with a simple idea such as a coffee shop.
And be prepared for a five year lease at minimum.
One other idea is to pop into existing businesses, especially retail and restaurants that are hard to keep open, and diplomatically ask the owner how things are going. You may find someone that will let you take over a lease.
A word of advice: You may find cheaper real estate up at Columbia and they drink coffee too.
One final word: The city makes grants to entrepreneurs who start businesses in certain zones. You shoulc Google "NYC grants" and see what you can find.
_JQ
Thanks every one for your replys.
As per a 5 year lease. No problem taking on a long term lease. But what kind of financial requirements do land lord's want? Do they want a lot of rent in advance? I am not sure just how much capital I will be able to get, or how much i would be willing to deploy.
Also, I am trying to project costs, so that i know how much i need to sell to break even. How can I find out what the lease rates are? I guess I can just ask the owners? Wondering if any one can give me a range. I will need 500-1000 sq ft of retail space on NYU campus which is located somewhere between west 4th and Waverely, just west of broadway. So its an expensive area. (zip: 10003)
As for the idea of taking on some on else's location 2 thoughts:
1) Generally, i know that it is a horrible idea to take over a failled restaurant, after all, why did the restaurant go bust to begin with.
2) Specifically dealng with nyu campus, recently there's been a startbux opening, and between classes the line goes out the door. There are 6 coffee shops on Waverly located 2 blocks away, that used to be the coffee central on campus. It is my guess that one of them has to be feeling the pinch. Thankfully, my idea isn't to actually sell coffee but a very similar beverage.
I have heard that in certain leasing transactions where a land lord controls a significant amount of frontage in an area that certain tenenats can get exclusivity rights for the area. For example a Mailboxes Etc, would not want some one to open a very similar venture down the block. Is it possible to approach nyu to get the exclusive rights to sell my product in that area? For example a "no new shops of my kind" clause in a lease.
Sorry I can't tell you exactly what i'd like to open, but the idea is really easy to copy and my only worry is that it can be a bit trendish and very easy to open. Any one heard of the bowling alley theory? That is when bowling first comes to an area the first guy made a lot of money, then every one else started opening bowling alleys and killed the market. Once the demand started to weaken as the fad passed half of them go under.
In any case, i don't think my idea could just die out over night. But i've read some stuff about retailing. Did you guys know that no matter how much McDonald's advertises 75% of all the customers who walk in, go in on impulse? I'm not selling food, but I feel that this type of beverage will exhibit a similar impulse purchase trend. Hence that is why I am looking for a high foot traffic area.
lastly any one here ever run a coffee shop or a deli? esp in NYC. I;d like to pick your brain so i can get a good idea of what i am getting into. Thanks all!!!
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Doob