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james1

join:2001-02-26
reply to patcat88

Re: leave it up

Seriously, supposing you build a store somewhere and go out of business, you dont tear the damn thing down, you sell it so someone else can use it, and hopefully they do better.


patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Lets say you own a building, you lease it to a supermarket, the supermarket closes down, do you immediately tear down the building, or do you keep it vacant for a few months/years while looking for a new tenant to use the building?


hottboiinnc
ME

join:2003-10-15
Cleveland, OH

most of the time the supermarket has a multi-year lease on it that they still pay for. But i wouldn't tear it down. Re-lease it. But the problem is that the ones that have the multi-year leases will sublease and then what more than what the building is worth.

There are many like that in Northwest Ohio. Especially an old Foodtown store that wants $5.00psq the building is over 10years old! No way is anyone going to pay that. Walmart wants almost the same for their old store. But they also renew the lease every time it comes up to expire due to they can keep out any competition like Target that wanted it.



RARPSL

join:1999-12-08
Suffern, NY

said by hottboiinnc:

most of the time the supermarket has a multi-year lease on it that they still pay for. But i wouldn't tear it down. Re-lease it. But the problem is that the ones that have the multi-year leases will sublease and then what more than what the building is worth.

There are many like that in Northwest Ohio. Especially an old Foodtown store that wants $5.00psq the building is over 10years old! No way is anyone going to pay that. Walmart wants almost the same for their old store. But they also renew the lease every time it comes up to expire due to they can keep out any competition like Target that wanted it.
The solution to the later problem is a "Use it or Lose it" clause in the Lease renewal terms. If they have left the property vacant at renewal time, they can be optionally be denied the right to renew the lease (or they can be allowed to renew for the normal period with the a "cut short" provision such as the one in my next sentence). There can also be a possible clause that can allow the owner to foreclose on a vacant/abandoned property at the anniversary date (ie: The lease can be terminated at the next anniversary of the signing after the end of the property being vacated for a set period of time).

As to the sub-lease situation, this can be handled by a a ban or restrictions in the Lease.

hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Generally companies do not wait for the lease to come up for renew. They renew them well before the time due to always ensuring they have an office/store or what ever. Major companies do this even with vacant buildings. It keeps them from losing them.