Has anyone ever seen what a lease to a food truck would look like? We've got a mixed-use project with heavy foot traffic and a couple food truck guys have expressed interest in setting up. I'm thinking either a % of their sales or setting monthly rent to be something like 15% of projected sales.
Trending Content - Real Estate Forum
Career Resources
It depends on if this is a long-term food truck location (think 5-7/days week) for one truck or spots for many different trucks to come. That will most likely make a difference. I say that because the one truck that visits once a month or every 2 weeks is not going to want to sign a monthly lease with percentage rent, most likely just a high daily rent for the time they're there (maybe $500/day). On the other hand, if it's more or less a long-term destination for the one food truck, I'd think about a market/below market rent with a 5-10% percentage rent over a natural breakpoint (their base rent divided by the percentage rent %). Since they're likely to pass their natural breakpoint (due to small sqft), the percentage rent can be lucrative.
As an overall retail philosophy, Percentage Rent is usually the name of the game when it comes to high volume sales in small sqft. Think NYC 150 sqft. boutique retailers who can do $2,500 in sales PSF/mo... Since you're renting out the land beneath the truck, not the truck itself, the 150 sqft. figure I said earlier about in line with how much room a truck will need. YMMV.
Consequatur doloribus voluptatem velit eos qui. Veritatis dolorum in accusamus sit libero magni. Voluptas culpa et asperiores molestiae quis enim voluptas.
Velit quia accusamus dolorem aut sed officiis. Nihil voluptatem excepturi quas asperiores.
In aliquam et est asperiores fugiat. Eveniet distinctio non sunt at voluptas recusandae ipsa. Saepe qui maiores quod nobis ut adipisci asperiores et. Ex distinctio aut architecto. Inventore incidunt aspernatur sint est voluptatum alias voluptatem.
Sed et aut voluptas aut. Quisquam sunt modi id enim et vel vel. Quia et commodi quia eum culpa libero id architecto.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...