As a (very small-time) commercial landlord I want absolutely nothing but business success for my tenants.
Several years ago there was a generational change in the management of a long-time tenant, a 'white table cloth' Italian restaurant. When recent reviews on Urbanspoon and Yelp turned sour I feared the worst. Sure enough, they went from timely pay to "slow-pay" to "no-pay".
In the end I not only got stuck with 6 months' "no-rent" I had to pay an agent a hefty fee to find a new tenant and then had to pay for an even heftier build-out allowance for the new tenant before I saw even a dime of "new rent". Through all of that I made timely payments to the property's mortgagor and timely payments to the taxation authorities. (What do you think their attitude would have been if I had tried to have them "participate" in my financial misery
)? Thank goodness this "tenant gone bad" only occupied 2% of the property; that's why I avoid "big box" like the plague.
Happily, the new tenant is very successful; so successful that they expanded into a vacant ajacent space and built a piano bar. This morning I checked them on Urban Spoon and 88% of the 171 reviews are positive. Such is the "creative destruction
" of the free market.
As 'venerable' as Junior's Deli was, the market was clearly "telling them something" when their gross revenues declined by 20%; in a business sense that "something" is "marked for death
". Their clientele
spoke this eloquently by withholding their patronage and taking it to other places which better satisfied their needs, wants, and desires.
Believe me, "landlord greed" played no part in this process; all they wanted is a fair
market rent for their
11,000 s.f. property and for it to be paid timely and in full. In fact, given my "sob story" above one might even feel a little pity for the costly process this failed business is forcing them through!
& BTW: why is a "deli" whining about a $4.00/# increase in the cost of corned beef? Any Deli
"worth its salt" (and worthy of the name) brines and seasons their own corned beef, pastrami, etc. And the last time I looked, wholesale brisket is cheap as dirt. Also, if I had a business grossing $7MM out of 11,000 s.f. I would have made it a priority to become my own landlord, like those 'venerable' NYC delis and specialty groceries who own their own buildings.
post edited by MetroplexJim - 2012/12/27 10:28:20