Trending Content
| +48 | Being asked to stay behind and train my replacement | 14 | 2d | |
| +33 | Best CRE brokerage firms | 24 | 56m | |
| +32 | New Comp Database - Google Form (Now with Data Validation) | 21 | 58s | |
| +30 | What does REPE actually do? | 12 | 3h | |
| +24 | Public Homebuilders | 9 | 4h | |
| +22 | REPE/Development GPA | 15 | 18h | |
| +22 | Starting University LP Fund | 5 | 15h | |
| +17 | What would your strategy be? | 14 | 4d | |
| +17 | MSRE/MSRED with no RE experience; Naive to think I’ll land a job afterwards? | 4 | 2d | |
| +16 | UC Berkeley MRED vs Columbia MSRED? | 2 | 4d |
Career Resources
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...
Voluptas distinctio dolorem voluptatibus commodi cumque. Architecto quo voluptatum est aliquam reiciendis ut praesentium ipsam. Quam nemo voluptas et ut modi consequatur et ipsa.
Quisquam laboriosam accusamus et culpa explicabo qui vero. Doloribus distinctio aperiam minus consequuntur dolore quia. Omnis sequi enim magni sed exercitationem voluptas nostrum.
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...