Capital Retail Group

Pottery Studio To Open In Vienna

Robert T — Wed, 22 May 2013 14:35:28 +0000

We are excited to announce our client Sarah Selvaraj of Kiln and Co has sign a lease to occupy 1,400 square feet in historic downtown Vienna, Va. Kiln & Co offers paint your own pottery,workshops,gifts, and summer camps.

Natural Breakpoint

Robert T — Mon, 22 Apr 2013 18:05:19 +0000

Some of our clients ask us to help explain percentage rent. A landlord of a retail property may require a tenant to pay a predetermined percentage of their retail sales above a defined breakpoint.

The additional rent is calculated based on the tenant’s sales over a certain dollar amount. A natural sales threshold or breakpoint is the annual base rent divided by the overage rate.

Follow the three steps below to determine the overage rent and total annual base rent for a natural breakpoint.

Annual Rent / Overage Percent Rate = Breakpoint
Total Sales – Breakpoint = Excess Sales
Excess Sales X Overage Percent Rate = Overage Rent
Base Rent + Overage Rent = Total Annual Rent

To calculate the overage you must be know the overage rate, annual rent, and total sales.

Overage Rate = 8%
Annual Base Rent = 120,000
Total Sales = 1,600,000

The answers are as follows:

$120,000 / .08% = $1,500,000 Breakpoint
$1,600,000 – $1,500,000 = $100,000 Excess Sales
$100,000 X .08% = $8,000 Overage rent
$120,000 + 8,000 = $128,000 Total Annual rent

Percentage rent is usually calculated and paid on an annual basis.

QSR’s continue to Rise

Robert T — Sat, 16 Mar 2013 00:54:34 +0000

Like the Dow Jones QSR’s continue to rise in D.C.

Great Streets Grant

Robert T — Tue, 05 Mar 2013 00:54:00 +0000

Through the great streets grant program, D.C. retailers can receive up to $85,000 for the purpose of capital expenditures to improve their leased retail space. Check out the various boundaries HERE.

Absorption Rate Calculation

Robert T — Sun, 27 Jan 2013 17:18:55 +0000

Absorption is the amount of inventory(i.e. housing units,square footage) that is leased or sold during a specific period,usually a year. Absorption typically is reported as a rate:

The number of units that become leased or sold during a certain period divided by the period. For example, 500,000 square feet(sf)of retail space absorbed during the previous 5 years is 500,000 divided by 5 = 100,000 sf per year. Specifically to calculate absorption, one needs the total unit of space occupied at the Beginning Of the Year(BOY) and the total units of space occupied at the End Of the Year(EOY).

The absorption formula is:

EOY Occupied units - BOY Occupied Units = Units absorbed

For example, consider a retail sub-market that has 850,000 sf of occupied retail space at the BOY. If 900,000 sf were occupied at the EOY, the absorption for this market would be 50,000 square feet.

However,the absorption rate calculation must be modified to include units added, removed, or vacated during this period of time. For example, If the available BOY total retail square feet was 850,000 sf and there was 25,000 sf of vacant space at BOY the total BOY occupied retail space equals 825,000 sf. Assuming 900,000 sf were occupied at the EOY the absorption rate would be 75,000 square feet.

Central Properties

Robert T — Mon, 21 Jan 2013 18:48:25 +0000

Paul Sliwka is known by many as one of the most successful residential agents in the entire Washington metro area. In 2010, he asked Capital Retail Group to help find him a location and negotiate a lease for his company Central Properties. Recently, we had a chance to visit and see Paul in action.

DC Warehouse Space Lease Comparable

Robert T — Mon, 21 Jan 2013 00:36:53 +0000

Alta Bicycle Share leases approximately 10,000 square feet of space at 1714 2nd Street in Southwest Washington DC for $15 per square foot. To calculate the annual rent multiply the square fee by the price per square foot. 10,000 X 15 = $150,000 or 12,500 per month.

Scratch DC Looking for DC Restaurant Location

Robert T — Wed, 16 Jan 2013 01:34:28 +0000

Scratch DC helps make amazing meals easy. Founded by foodies, they aim to take the hassle out of creating incredible meals at home. They believe in locally-sourced ingredients, believe in saving you time and money. Now Scratch is expanding their concept to include a restaurant. We are actively searching sites Scratch DC. Where do you think would be a great place for Scratch?

Base Rent Escalation Calculation for Retailers

Robert T — Fri, 04 Jan 2013 17:10:18 +0000

It is common for landlords to increase the base rent on retailers 3% annually. To understand how this would impact the rent over time, it’s important to complete the lease calculations in the entirety. The below retailer occupies 2,600 square feet and pays $30.92 per square foot in the base year and is charged 3% escalations thereafter on a 10 year lease.

Annual Amount	Annual PSF	Monthly Amount	Monthly PSF

$80,400.00	$ 30.92	$ 6,700.00	$ 2.58
$82,812.00	$ 31.85	$ 6,901.00	$ 2.65
$85,296.36	$ 32.81	$ 7,108.03	$ 2.73
$87,855.25	$ 33.79	$ 7,321.27	$ 2.82
$90,490.91	$ 34.80	$ 7,540.91	$ 2.90
$93,205.64	$ 35.85	$ 7,767.14	$ 2.99
$96,001.80	$ 36.92	$ 8,000.15	$ 3.08
$98,881.86	$ 38.03	$ 8,240.15	$ 3.17
$101,848.31	$ 39.17	$ 8,487.36	$ 3.26
$104,903.76	$ 40.34	$ 8,741.98	$ 3.36

New Yoga Studio Coming To Clarendon

Robert T — Wed, 02 Jan 2013 18:59:44 +0000

Our client, Susan Park of Spark Yoga, has signed a lease with Equity Residential to occupy 3,000 square feet in The Shops at Pershing located at 2201 Pershing Drive in Clarendon,Virginia. The studio will have enough space to offer both heated and non heated classes including power Vinyasa, Hatha Fusion, and restorative related yoga. With the help of experts in yoga studio construction and design, Susan meticulously planned every inch of this soon to be beautifully built studio. Expect an opening in May. Namaste!