Trending Content - Real Estate Forum
Career Resources
WSO Free Modeling Series - Now Open Through
November 30, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
You get this idea from the show Silicon Valley lol?
I think SV got the idea from the real world. Isn't that the typical startup incubator model - sponsor gives resources, often guidance or networking and possibly including office space, gets equity in return
Federal Realty does this for retail, dont know what terms though.
A guy I used to work for did this all the time. He was part of an angel investment group and would often split deals with other HNW individuals and give free or discounted real estate in lieu of cash.
Leasing agents can take equity instead of a commission on retail deals. Other than that I haven't seen too many of these.
Not exactly the same concept, but some retail landlords will accept a lower rent in order to have a percentage rent clause, This is usually done over a natural breakpoint, i.e. 7%. However, due to the state of retail, it is diminishing in popularity.
Bachmanity
.......
going to be tough to service your debt with equity payments
Didn't think about that, thanks
Interesting concept and a terrible business move, either by the landlord or tenant. Almost all start-ups fail, making it a terrible gamble (not really even a calculated risk) for the landlord, and if the start-up has a reasonably high chance to succeed it's an awfully expensive way to service your rent as a tenant.
Yes, large private retail developer I know does this.
PayPal’s landlord accepted equity when the company first started. The landlord at that time is a near-billionaire today and a close friend to the Mafia.
So yes, this model has existed since at least the beginning of the Internet.
It's called percentage rent. A shit load of malls do this in the US. It's not for equity as landlords are not that stupid to take a chance on some retail business. For office maybe, but again that's been done with incubators etc...
Iure sunt perferendis atque laborum. Possimus blanditiis est quam illo quae consequatur tenetur. Labore magnam maxime delectus autem tempora cum.
Quis debitis harum labore beatae provident. Reiciendis vero dicta ex accusamus fugit ex et esse.
Facere quidem cum id fugit eligendi sint. Sit quaerat et earum deleniti doloribus veritatis. Tempore tempora omnis velit qui harum reiciendis rerum. Et sit soluta rerum incidunt. Qui commodi quam fugiat.
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...