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.
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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.
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