Offices for Rent

[Connie]

"Too Close for Comfort" might have been a better title for this post because the impact of the economy is hitting very close to us right now, right next door and within our building.

One of my tenants is one of the largest landscape companies in the area, dealing with mostly high-end clients. His check for rent has been late for the last couple of months, but I attributed that to the fact that he was holding out to make certain that I installed the new air conditioning unit, plus a couple of other issues. His check for this month bounced.

He told me yesterday that he was burnt out and was ready for a change, so he was closing his business at the end of September. Because I keep my ear very close to the ground, I know that he many contracts for maintenance of yards and property, but he has not been able to generate any new business for the last couple of months. Just 3 months ago, he was anticipating hiring a new salesperson and wanted to rent an additional office when it became vacant so that this new salesperson would have it.

My, my! What a difference a few weeks can make.

Along the same line, my niece worked as a designer for a very high-end interior decorator. At least I consider her (not the niece) fee of $200 per hour to be high-end. I know that her clients included some very well known sports and entertainment folk. She told my niece about 2 months ago to find another job because she had no jobs, not even a small one.

I'm not really trying to make any great statement here, but I do have 2 offices for rent now. Anyone here interested??

 

[Victoria]

Connie that's a big impact on you.

V

 

[BOSS]

Connie...sorry to hear.

One thing, mowing lawns with today's gas prices is **at best** a break even gig. I know, I do the books for a lawn care company, so your tenant probably is not operating at a profit...if that's what he means by maintenance. Even with 70 accounts the company I monitor operates at a loss. The profit comes from the other jobs you get from these customers, like tree trimming, installing pavers, snow removal and such.

 

[Connie]

Thanks Victoria and Boss.

It is a big impact on me because I was using his rent to help pay for the building.

By "maintenance," I meant that his contracts are for keeping yards and grounds cut, cleaned, whatever the contracts called for. This is a company that builds waterfalls, streams, lots of rock formations, etc. They are definitely landscape designers, not just a bunch of lawnmowers and rakes. Their work has been featured in magazines and similar periodicals.

My point is, and you stated part of the reason Boss, that the business was not generating any new business, and their existing business could not maintain the company. This is a company with fleets of vehicles and a large inventory of equipment. Their office staff was always small, only 5 people usually, but their field (literally and figuratively) employees numbered in the hundreds.

 

[Tracy D'Amico]

Connie,
That's scary, and I hope you find a new tenant ASAP.

Have you considered trying to attract other businesses that could complement yours? Like a tuxedo rental/mens store, bridal shop? If it's purely office space, a photographer, videographer, invitations or other event person who may need an office for meeting with clients ... just a thought.

 

[elmo]

Connie, I'll keep my ears open for ya. Things are tight here too. I pray for away to come to help us all.:tread:

 

[Connie]

Thanks Guys! I really do appreciate you support and your ideas.

Tracy, you may have hit the nail on the head. I was pointing out that these businesses were gone because they did not attract new business. I was interpreting that to mean that they were not gleening new customers. You've given me the idea to look for a new avenue for my business.

Again, thanks to all of you, even the ones who read but didn't comment.