Asa Jay's weblog

Today I was successful in contacting Vandervelt Construction to get lease informaiton on properties recently built on the Northeast corner of Hayford Rd. and Hwy 2. I talked with Jason Strain who was a very nice and patient gentleman and helped answer a lot of extra questions. The phone number I called was 467-6654 and the receptionsist forwarded me to Jason. Jason told me he does not have a direct number.

There are currently four spaces open for lease, 1178, 1229, 1448 and 1620 square feet respectively. Each leases for $18 a square foot, per year. The triple net is currently estimated at $3.25 a square foot. Again, they require a five year lease which would be increased by 12.5% in the next five year renewal. As I talked with Jason about other terms, he mentioned he was not sure, but thought the banking arrangment they had with their lender required them to lease at five year intervals. He did mention he though maybe a three year lease could be negotiated. He did not come across with any kind of pressure and really seemed to understand I was new at this and was helping provide valuable information.

From my perspective, Jason gave me some good information that could be used during lease negotiations. I could try to offer a shorter lease term with a renewal option that included an incrimental increase. Something like a one year lease with an option to renew with a 3.5% increase. I do believe this is the kind of thing Jason’s extra information would help me with.

I would be responsible for all utilities. There is at least one restroom installed in each space, with the largest space having two. Interior remodeling would be my responsibility. The only requirement is that I have any plans pre-approved prior to seeking permits from the county. When I asked about being able to put in a deli/coffee bar, I was told that Starbucks (which is a current tenant) had an exclusive agreement to supply coffe. So what I could do is still have the deli bar, but I could not advertise any specialty brand coffee, even though I could serve it.

Now that I’m thinking about it, the best thing I could do with regard to the deli/coffee bar, is to talk to the management of the Starbucks to see if I could swing some kind of deal with them. I’m not sure what kind of deal, but I need to put that at the back of my mind and noodle it for a while.

Here is a basic chart of the costs for the different sized spaces currently available:

Size Monthy Cost Triple-Net Cost

• 1178 $1767.00 $319.04
• 1229 $1843.50 $332.85
• 1448 $2172.00 $392.17
• 1620 $2430.00 $438.75

I need to get this information into a spreadsheet for comparison against other properties, and then get it posted to my Mind Map.

Time spent on the phone with Jason, approximately 15 minutes.

Asa Jay

This entry was posted on Thursday, September 7th, 2006 at 15:54 and is filed under Entrepreneurial Internship, School. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.