Professional Documents
Culture Documents
Competitors
Storefront
Summary: Online marketplace for pop-up retail/events
Actionable Info
Narrow proof point of our business model
Examples of market demand, finances, etc.
Location: Big markets (LA, SF, NY, HK) -- a limitation
Website: https://thestorefront.com
Source: http://www.nytimes.com/2013/12/22/fashion/Pop-Up-StoresStorefront.html
Competitors: Concert booths, real estate agents
Suppliers
Landlords, renters (for subleases)
Example: Nightclubs in daytime
Supply drivers
Desire for flexibility, less overhead
Zoning changes, buildings getting demolished
Shorter-term leases, unmonetized gaps between leases, offpeak
vacancies
Subleases
Demand: Artists, brands, boutiques
Online stores/showrooms (e.g. clothes)
Price: 6-12% commission to renters
Also provides general liability insurance (unclear if part of 6-12%)
Example: $1,550 a day in New York for Kanye West (355 Bowery)
Competitive advantages
More direct to consumer -- reduced fees, etc.
More accessible than concert booths (location and time)
Generates big buzz with fan communities
Background
Started March 2013. HQ in SF
Founders: Tristan Pollack, Erik Eliason
Airbnb of retail
# of spaces: 300 in SF, 200 in NY (as of Dec. 2013)
Problem to solve: 1/10 US stores is vacant
Vacant
Summary: Provides turnkey services for pop-up activations and brand marketing,
for brands and prime real estate acquirement
Actionable info: Possible adjacent services we can branch out to. Needed
services
Established 1999
Deep base of brokers, agents, property with liens, non-paying tenants
Reviewed over 1,260 short-term license agreements
Will pay security deposit: $3,000-35,000
Business model: Scouting fee plus upsell for marketing services
Example: Major events/holidays like fashion weeks, conventions
Others
Research
Emerging Trends in Real Estate 2016 (Sep. 2015)
Pricewaterhousecoopers and Urban Land Institute
Example model: Coworking sponsor leases space from landlord, subleases
equipment or whole space with extra amenities. Operating margin ~30%
Struggling suburban office parks with vast parking, especially in Midwest (B
centers)
Find Office Space (Mar. 2014)
42Floors
Actionable Info: General lease information
Time to move in: 1-3 people 24 hours (coworking space), 10 people weeks
(sublease), more requires lease (few months)
One month to find an office, two more months to
negotiate/buildout
Lease issues: Exit strategies (expansion, termination, contraction, sublease,
renewal)
Termination and contraction: Often not accepted by landlords
Advisors: Attorney, broker, tenant representative, architect, listing
agent
Load factor: Unusable space like hallways
Common area: Shared area like restrooms, lobbies, elevators -14-20% of floor
Opex: Utilities (HVAC, electricity, gas, water), taxes, janitorial,
maintenance
Responsiveness of property manager; building security (alarms,
locks, etc.)
Getting a lease
Office equipment dealers will layout floor plan for free
Landlords may not do space rendering for shorter leases
same terms
turnkey buildout
Pre-existing condition clause (return
to original when vacate)
Significant construction may require project
manager, workplace designer
Be careful if landlord asks for personal guaranty
Management and administrative/maintenance fees
Rentable square footage = Usable square footage * (1 + add-on
%)
Example pricing in NY/SF
750 ft^2: $7,500/month (5 people, shared space)
3,000 ft^2: $12k/month (20 people, sublease)
15,000 ft^2: $55k/month (100 people, lease)
Lease types
Full-service (all-inclusive), most common for smaller tenants
NNN (Triple Net), standard for single-tenants -- fewer services like
maintenance
Gross (like full-service), for industrial buildings
Commission of 4-6% of lease value. Split between listing agent
and tenant rep
Tenant reps may not help if lease is short or location is small
Building types
Class A: Central location, larger size, newer
Class B: Older buildings or non-prime location
Class C: Lower quality (no elevator, AC, etc.)
Buildout example costs per ft^2
Building standard: $25-43
Above standard: $33-54
High finish: $48-70
rates
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