Commercial rent increases

[Fernando]

For a restaurant to be successful, i believe that they need to seat 100 people. That is a big overhead space, that will eat you alive if you don't fill it. And any day that things don't go well, you lose some customers. To install a kitchen in a small restaurant space is around $100,000. It seems in my neighborhoods the take outs have survived. But they all have the same tasting food. A good different tasting takeout will make money.

The potential Mexican restaurant tenant seems to backed out. I'll be talking with another potential tenant today. Hope it's not a breakfast cafe since eggs are so expensive.

 

[Fernando]

Being a landlord is tough these days.
Not only have to worry about Trump's tariffs hurting my tenant's business but the stealing from have nots.
They cause a mess digging through the trash bins at night.
And few days ago I had a metal part on one of my buildings most likely stolen by the unhoused (politically correct term for homeless).
It cost me $650 to have it customed made. With tariffs now, it will cost more to replace.
The metal part is easily taken out and I'm afraid it will be stolen again. Ugh.

 

[Fernando]

Just talked with new tenant. Sound like perfect tenant with money.
Only problem is this fusion restaurant may compete with my adjacent restaurants food type.

 

[Fernando]

Adjacent restaurant does not want fusion restaurant as it could be conflict with food. Ugh.
Back to looking for another new tenant.
I noticed all the new potential tenants I'd been interviewing have been immigrants with ambition to grow their business.
What happened to American bornes wanting to open restaurants?
As Hamilton Broadway Show sang Immigrants (We Get the Job Done).

 

[Fernando]

How times go so fast.
Remember the Psychic I rented during Covid. Her lease is up and wanted 18% decrease because of the glut in commercial space. Ugh.
Unlike residential rents which keep going up.
Bad investment of decision of mine in having commercial properties.

 

[sputnam]

How times go so fast.
Remember the Psychic I rented during Covid. Her lease is up and wanted 18% decrease because of the glut in commercial space. Ugh.
Unlike residential rents which keep going up.
Bad investment of decision of mine in having commercial properties.

Thought you were an appraiser. An appraiser would be aware that prices... and rents... rise and fall over time.

 

[Tom D]

I don't know if a commercial investor ever had any idea of a covid type crisis to be hitting this country. I mean a fake lock down covid crisis. Also, should have realized the influence of internet shopping increasing. But with covid, exploding. Didn't see, or anticipate, two very bad things happening to commercial space at the same time.

It's sorta like appraisers saying the market is going to crash, but nobody believe us till it's to late. And we also get caught in the exact timing of those things.

 

[Fernando]

I don't know if a commercial investor ever had any idea of a covid type crisis to be hitting this country. I mean a fake lock down covid crisis. Also, should have realized the influence of internet shopping increasing. But with covid, exploding. Didn't see, or anticipate, two very bad things happening to commercial space at the same time.

It's sorta like appraisers saying the market is going to crash, but nobody believe us till it's to late. And we also get caught in the exact timing of those things.

Covid accelerated remote work. Every family is doing remote work except me.
Less need to go to office buildings thus adversely affecting the nearby commercial stores and their rents. Same goes with online buying.
I thought remote work would be far in the future like computers one day replacing us.

 

[CCAAMO]

How times go so fast.
Remember the Psychic I rented during Covid. Her lease is up and wanted 18% decrease because of the glut in commercial space. Ugh.
Unlike residential rents which keep going up.
Bad investment of decision of mine in having commercial properties.

I'm assuming they already knew your answer before the asked

 

[Fernando]

I'm assuming they already knew your answer before the asked

That's the disadvantage in renting to a psychic.