LANDLORDS LOVE TO HAVE LAUNDROMATS IN THEIR CENTERS
Are you a landlord looking for a quality long-term tenant for your building or center?
Laundromats make great tenants. Instead of searching for a new tenant every five
or ten years, a Laundromat provides a landlord with a long term [up to thirty years
and more] tenant. The high cost of tenant improvements paid by the tenant to build
a Laundromat guarantees an unbroken income stream. The tenant may assign the
lease, but the facility remains and the rent continues; Laundromats change hands
but do not go out of business. They are premium tenants because once you have
provided the initial concessions (free rent during construction and allowances for
improvements) you never have to pay another real estate commission,
remodeling
cost or experience any vacancy period. Good times or bad the recession-resistant
Laundromat business goes on.
Laundromats also serve as excellent draws for your centers with many other busi-
nesses wanting to be located near the customer traffic using a busy Laundromat.
These neighbors who benefit are often willing to pay additional amounts for their placement nearby a Laundromat. With cost of construction of a new Laundromat approaching $300.00 per square foot, the quality of the tenant ishigher-end. Gone are the days when the neighborhood "handyman" could afford to build, own and operate a facility. As an investment, the tax benefits of ownership (ADA tax credits and five year depreciation) have moved the ownership to a higher-income individual.
These neighbors who benefit are often willing to pay additional amounts for their placement nearby a Laundromat. With cost of construction of a new Laundromat approaching $300.00 per square foot, the quality of the tenant ishigher-end. Gone are the days when the neighborhood "handyman" could afford to build, own and operate a facility. As an investment, the tax benefits of ownership (ADA tax credits and five year depreciation) have moved the ownership to a higher-income individual.
With the elevated cost comes another benefit for a landlord: tenants take good care of their investment. Cleanliness and regular attending by owners and staff are the norm. Review the items below to see if your center or building meets the requirements of a successful Laundromat location. At the bottom of the page are examples of two addendums that are included in most Laundromat lease agreements. You can review them to see if you want a Laundromat in your building. These are the things needed by most Laundromats in order to be successful:
Site:
1. Long term lease. [twenty years+]
2. Good parking.
3. Visibility. [monument sign a plus]
Utilities:
1. six inch sewer line.
2. two inch water line.
3. gas meter near site.
4. 600 amps of three phase power.Demographics:
1. At least 35% renters.
2. Blue collar workers.
3. At least 25% Hispanic.
4. Density minimum of 20,000 within 1 mile.
5. Rental rate (with CAM) no more than $1.50 to $2.50 per square foot.
COMMON LANDLORD QUESTIONS
