1
That empty storefront on Gratiot near Eastern Market finally has a sign in the window after sitting dark for 18 months
The landlord switched from asking $28 per square foot down to $18 and offered six months free rent, and within three weeks a bakery signed a ten-year lease, which makes me wonder if anyone else has seen landlords get realistic on pricing and actually fill spaces faster.
3 comments
Log in to join the discussion
Log In3 Comments
davis.ruby18d ago
Whoa, so they pretty much cut the price by over a third plus half a year free? Makes me wonder what kind of math that bakery did to make it work at the new rate versus what the old tenants couldn't swing.
4
benclark17d ago
So that old place on Elm Street, they had a 1,200 square foot lease with a triple net clause. I gotta play devil's advocate here for a second, @davis.ruby. Maybe the new bakery just has a totally different business model. The old tenants were probably trying to sell high-margin, artisan stuff out of there, and the rent was eating them alive. But if this new place is just doing high-volume, low-cost pastries with like three employees and no seating, their overhead is way lower. Plus, a half year free upfront is basically a cash injection to get set up. Doesn't prove the math works long-term though. I'd be curious to see if they're still there in 18 months when that free year is long gone.
6
webb.ben12h ago
Yeah my math skills are about as reliable as that bakery's rent projections. Good breakdown @benclark.
1