Starbucks Lease Agreement

I recently listed this Starbucks site in New Port Richey, Florida (pictured above) and if you want to get into the realm of net leasing investments, you should consider this deal. As mentioned above, this customer let Starbucks approach him to sign a new 10-year lease. They asked for the inclusion of a termination option in year 5. By working with me, the client was able to get a very commercial agreement. Starbucks signed a new 10-year lease that retained its option to terminate Year 5, but they must give the owner 6 months` notice and pay a fine of about $US 50,000. In the worst case, this equates to nearly a full year of cash for the owner when they plan to exercise their termination option in year 5. However, in these situations, all signs indicate an intention to stay in the long term. “With effect from June 1 and for at least a period of 12 consecutive months, Starbucks will need concessions to support modified operations and adjustments to lease terms and basic lease structures,” says a letter dated 5 “If you have retail or business space that is empty or the lease expires, we don`t really know if the tenant will come back, or maybe they`ll come back with half the size,” he said. Starbucks` quarterly profit fell by half from 2019, as the company announced on April 28 in an investor interview on earnings, to $328.4 million. The company has indicated that it plans to apply for lease concessions at the same address from the owners. Some major retail and restaurant distributors said they would keep the rent until landlords agreed to new rental terms, including Lynnwood-based skate clothing store Zumiez, which has more than 700 stores.

This entry was posted in Uncategorized by admin. Bookmark the permalink.