John Eckburg, Domino’s Pizza franchisee, was considering what to do with his North Augusta, SC location. It wasn’t performing as well as it had in the past, and he wondered if he needed to move it. It was straddling two different markets, and it wasn’t clear which way to go. The shopping center it was located in was slowly losing national tenants, and there appeared to be room to add another location.
John met with myself (Jonathan Aceves) and Joel Presley (both now at Meybohm–formerly Presley Realty). We discussed options and reviewed the market together. I created market and delivery-zone maps of their current locations, and identified areas that could maximize both visibility and coverage. We found a number of potential locations, ran numbers and demographics. After a few conversations, it was determined that it might make sense to move the store closer to Downtown Augusta add a location further into North Augusta.
The current lease was nearing expiration, and the landlord was pressing for a new lease. Based on an understanding of the market and the landlord, we didn’t think the landlord would complain too much if Domino’s became a Month-to-Month tenant. We estimated it would take 6 months or longer to backfill the space. This approach worked perfectly to give Domino’s time to determine their next move.
For the Downtown location, we found an off-market location, a former Krispy Kreme donut shop, now used to sell lottery tickets. We negotiated terms, and connected Domino’s with a solid business attorney, who helped craft the purchase and sale contract. We helped John to navigate the due diligence process, attending meetings with the city and zoning leaders, and making sure no unforeseen issues came up. When it was discovered that the seller’s broker had misquoted the square footage we carefully renegotiated the price down without giving the seller an opportunity to terminate. The Downtown Augusta Domino’s is doing well and is a complete success.
The North Augusta location was a bit more complicated. There were no options that made sense to purchase. We found a space in a shopping center in front of the Wal-mart at Exit 5, just off Interstate-20, and started negotiations to lease the space. The landlord really wanted to use their lease, and we were able to convince them to use the Domino’s lease, which really helped protect Domino’s and made review much simpler. We were able to negotiate a compelling lease rate, and a handsome TI allowance.
“Jonathan Aceves and the Retail team at Meybohm Commercial did an amazing job of helping relocate my North Augusta location and then negotiate my new lease in North Augusta! Not only did we achieve a great lease rate, but a TI allowance, and renewal options. Would definitely recommend them to anyone looking to lease or renew a retail lease!” -John Eckburg, Domino’s Pizza