Drive Thru Advice

[jatkinson]

My wife and I are in the preliminary stages of opening up a drive thru stand. We found the perfect commercial location in a small town (but growing fast) in central CA. It's highwayfront commercial right in the middle of town. The speed limit is 35 and there are only two lanes of traffic. This is a commuter shortcut to the main freeways to the SF Bay area, and just guessing I would say there are at least 50-60k commuters that will be passing by the drive thru every day. The other plus is that there are no drive thru coffee stands within 25 miles in each direction. There is also a truck stop right next door to the lot. I have a meeting with the land owner to discuss a lease price in two weeks and I would greatly appreciate any input on how much my monthly ballpark lease payment should be based on the info I provided above. I'm shooting for $600-$700 or so per month, is that realistic for that type of location?

Thank You,

James A.

 

[equus007]

hmm

Probably not. Not too familiar w/Ca. rental costs but it will probably be around 2000$ if it is as prime as you say. Check to see how long the property has been vacant. The property owner may be asking a high price and just waiting it out. I would double your figures just to be on the safe side.

 

[jatkinson]

Re: hmm

Probably not. Not too familiar w/Ca. rental costs but it will probably be around 2000$ if it is as prime as you say. Check to see how long the property has been vacant. The property owner may be asking a high price and just waiting it out. I would double your figures just to be on the safe side.

It's a rather large undeveloped lot and we would only be using about 25% of it. To the best of my knowledge the owner is just sitting on the land but it's not currently for sale or lease. I just happened to make a connection through a realtor friend of his. I'll post the final amount when I find out for sure. Thanks again for the reply.