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Old Posted Jan 12, 2018, 3:21 AM
Fritzdude Fritzdude is offline
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Join Date: Jun 2008
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Quote:
Originally Posted by bunt_q View Post
Because it actually takes a hell of a lot of human traffic to support retail. Either you need a boatload of residential density - which we do not have (certainly not at Downing and Speer) - or you need auto traffic, street frontage/visibility, and yes, parking. There's not a lot of in-between there. Retail is not an "amenity" - it's a business. And businesses need to be able to turn a profit to survive.
Yes - I agree with your perspective. I own a retail store and I’ve been considering opening something in Denver that focuses on shoes and clothing. The rule of thumb is that rent should never be over 10% of gross sales. If I need 2K sqft’ - and the asking price is $38/sqft’ and CAM is $7 - that means I need to pay $90,000 in rent each year, which is $7,500 per month, This is before budgeting payroll and other overhead (utilities, insurance, etc).. Bottom line; I need to expect to sell > $75K in merchandise each month just to stay in the black. That’s a lot, especially in the days of Amazon when prices are devalued by internet shopping. So, if you want to know why retailers aren’t setting up shop in your neighborhood; the sky high lease rates are a huge factor.

If they were closer to $20sqft like they were 10 years ago, I would jump at it. But lease rates are prohibitively crazy.
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