Re:Is Wine Fake?
by triceratops on Monday November 21, 2022 @06:07PM
(#33699479)
A residential landlord can't charge you much more than market rate because you could just move. At some price point a mover is going to be cheaper. Often there's also various rent control laws.
Commercial landlords, especially of restaurants, have way more pricing power because the tenants can't just move. Their customers expect them to be there, or there's a ton of existing foot traffic - location, location, location. And usually tenants put their own money into renovating the space for their needs.
Re:Is Wine Fake?
by selimthegrim on Monday November 21, 2022 @07:13PM
(#33700065)
And you haven’t even covered the magical world of triple net leases yet
Re:Is Wine Fake?
by triceratops on Monday November 21, 2022 @08:16PM
(#33700567)
I don't actually know what that is. Like I said, I've never worked in the restaurant biz. Everything I've written is just from reading random shit online.
Triple net is a bog standard leasing agreement for commercial properties - it's nothing specific to restaurants. Basically, you pay the expenses on the building. Taxes, insurance, maintenance costs.
Re:Is Wine Fake?
by jasonwatkinspdx on Monday November 21, 2022 @07:45PM
(#33700347)
A SUPER common pattern with restaurants is someone moves in and develops a location, tries to make it work for a year or so, then tanks. Then a slightly more savvy restaurateur leases the location along with the previous tenants buildout for far less, makes minimal renovations, and then makes it a success.
It sounds like you're describing landlord behavior where they don't simply arrive at a target rent and happily collect it, but attempt to actively monitor revenue of businesses renting from them and then ride the line between capturing that in rent increases below the line where it's worth it to the tenant not to move and unacceptable extortion.
If so, that's both interesting and kinda terrifying. I've never considered that rental prices might be set as much by specific tenant income as market conditions, and now I'm wondering if I should never tell any prospective landlord what my real income is beyond minimum requirements.