Depends. What kind of corner is it? What is traffic count? Who are looking to lease to? Most c-stores with National Credit will have a lease that they already use and will ask you to use their form.
Having a business plan means basically putting your "plan" down on paper. What are you looking for exactly? What are you buying for (dollar amount), what are you looking for in minimal return etc.? Than planning it out and putting it on paper to show the investors (Bankers etc.) how that plan will be played out to reach your goals. How will you market it for example etc.?
Your plan to “make as much as possible" is a good one:)
But how do you plan on achieving this goal? Are you planning on getting a large amount of money for 7 years or do you take less money for 15 years etc.? Term is much better to me than amounts. I say that, it doesn’t mean you give it away, you just take a very fair price and get longer guaranteed term and that usually brings the highest return in my opinion. For example let’s say at 3,000 sf it is much better to get $28 PSF for 15 years than $33 for 5 years etc. you are getting $5 psf less but you are adding an additional $765k at the lower rent. As you know that is just an easy example but really look hard at what is best for your situation, i.e. if it is a green site (newer area - with growth potential) then you might want to take the higher rent and take the risk of having a better tenant come along as things progress in the area. It’s all based on what you want to achieve for yourself and different people have different ways of achieving the same goal of “as much money as possible” and they do it different ways.
You might want to discuss with a broker in your area or market that deals directly with national credit c-stores to help. It is much better to pay someone to help make sure the paperwork is done correctly and the rates are the right amount than to try and do something you don’t usually do. The fees are usually easy to pay when you find out how much a great broker can make it better and easier transaction for you. In the end you find out that you will come closer to your goal of “making as much money as possible” if you hire the right people especially if you already have the tenant and all they are doing is consulting work for you. I would advise you to have someone in the Brokerage business in your area help with current rates and the overall business plan etc. the banks and investors would probably give more credibility if you had an expert in that area to help develop the business plan and negotiate the lease based off of current market rates etc. I am in the brokerage business and in markets that I am not living or if I am unfamiliar I look for the advice and council of market experts and it can be much easier to pay them than to lose money in the long run. Or you can check rates on LoopNet in your area and or call local listings on other c-stores and find out what they are asking for lease etc. (very valuable information - it’s your competition, and learning all about that market is what you have to do to get the best return and make as much money as possible. It's all about what the best is for you and where you can save money and where you need to spend it etc. and that includes developing the property and making improvements and build out etc. as well as having the right people on your team to accomplish you goals. I.e. Banker, Broker, Attorney etc. It can be easy or it can be hard but most of all make sure to at least call all of the c-store sites that are available in the area and get the traffic count (usually on state DOT site) and make sure you get demographics and have a good site plan for your site if possible. The easier you make it for the tenant the better off you are. You can do it all or you can get help, either way good luck and I hope you obtain your goal, I think that is my new goal "to make as much as possible!"
Take care and good luck with everything,
Apr 17, 2012