Lease costs

[Seamonkey]

What is the going price, per square foot, on commercial space in downtown Sosua....looking specifically for restaurant pricing on busy street such as Pedro Clisante. Based on roughly 1000sqft, what are leases at on average?

Thanks.

[mike l]

Originally Posted by Seamonkey

What is the going price, per square foot, on commercial space in downtown Sosua....looking specifically for restaurant pricing on busy street such as Pedro Clisante. Based on roughly 1000sqft, what are leases at on average?

Thanks.

Without answering your question you need to search these forums and spend some time here before you even consider such a bold move.

There are more restaurants here than tourists and I have seen many close.

There are plenty for sale and if you buy one you could eliminate your competiton !

[Seamonkey]

Been doing tons of research for quite some time now, the question I asked is part of it.


QUOTE=mike l;798996]Without answering your question you need to search these forums and spend some time here before you even consider such a bold move.

There are more restaurants here than tourists and I have seen many close.

There are plenty for sale and if you buy one you could eliminate your competiton ![/QUOTE]

[windeguy]

It would be very interesting to see what this rumor about renewed Dominican money interest in Sosua is about. Perhaps the overall redevelopment of Sosua, the supposed new Marina, etc is the reason? If this turns out to be true, this is just one additional reason to be very cautious about investments in the area. Can anyone else shed light on Pig's statement?

[El Rey de Mangu]

Not to be a "Nay-sayer", but just coming from a $$$ perspective, I think I saw a "restaurant" in the Top 10 WORST investments for 2010 (Forbes).

Especially in these times, we need to always look into what is called "next best alternative". This gem on day 1 of B-school, suggests that if I have a quantity of $$ to make an investment, then I need to examine the scenario where I have 5 potential projects where I can sink X dollars: Where is my Next best Alternative.

I'm not sitting in NY right now, but if I were, and I had 50K, my "last best alternative" is moving to a foreign market and plunking down a business (where I feel I can be successful because I was successful in NY).

Disclaimer: This is not a proposition, advice nor was it intended to offend. Just an opinion.

[Big Dan]

You know, that is an excellent question, and I did a couple of off the cuff analyses on commercial leases when I was last there. I asked around but there don't seem to be any statistics or reference material regarding. Firstly, I'm unaware of any grading system for retail or mixed use or office space....I believe commercial real estate is not that developed, nor is residential real estate for that matter. In my area we at least have access to Loopnet or Costar for comparison and market analysis. Pedro Clisante retail and mixed use space is Class C or D at best and you should pay within that tier. I couldn't find any Class A or B space anywhere within walking distance of Sosua's hub. I don't think it exists.

Please anyone, correct me if I'm wrong, but I believe lease prices to be a wild variant along Pedro Clisante, with tenants paying whatever landlords set without regard to what is being paid next door, and vacancy rates are comparatively high using just an eyeball analysis.

Regardless of what some people think of Sosua or its nightlife, if you are able to lease space as close to ground zero as possible (El Flow is an excellent example) you could have success if your business is tailored to the masses. Unfortunately the 800 pound gorilla on the street draws a certain demographic...you need to tailor business to El Overflow...

There may be a good real estate agent in the area who knows commercial..but I believe you should keep your business plan and negotiations for real estate as two different entities.

And, since there is no standardization of training, data collection, code of ethics, no local multiple listing service for agents to use, or licensure for agents you need to get with someone there who really knows real estate. Your lease will be your single biggest recurring expense notwithstanding your employee outlays...you need to see analysis...if you don't get it move on to the next agent, or if every agent tells you it doesn't exist, you are subject to the whims of your landlord.

[Big Dan]

Also, there is a BIG difference between business being for sale and negotiating lease terms. If you are simply buying a business you are probably inheriting what could be a flawed lease that may have caused the sale in the first place.

My best recomendation to you is to negotiate your best terms on vacant space and then tailor your business plan to the lease expense.

[Big Dan]

Pig, I think that any "new" development money will work best with business that draws the local demographic, yet has enough interest within the expat and tourism components to accomodate spikes in business. I see the same mistakes made over and over again down there...businesses sometimes have such a tight focus that any downward trend in expat or tourism traffic kills revenue.

The question is, really, what type of business is there that could draw the local demographic during both daytime and evening business hours? Or, should the focus be on daytime hours or evening hours traffic only? Two very different types of business are represented. It is quite a perplexing dilemma. I think any business focus should be on what the majority local demographic both wants and needs...give them a reason to go there and spend money, and let the expats/tourists find it as business expands from a strong base.

[swellsurfcampcabarete]

What an interesting thread this has become. You look at Sosua and think, WOW this place is brimming with natural beauty - it's certainly one of the most beautiful bays I've ever seen. The more grim aspect of the town just doesn't go with that and with the changes overall to Sosua, Puerto Plata, Cabarete, etc. in the last 4 years, we've long been thinking that Sosua is a prime place to begin again. Developments like Infiniti Blu (not anything to do with me btw) perhaps begin to set a new standard of quality accommodation that can be infectious.

At the moment, the buildings that line the bay are a mish-mash of 'style' and mostly no style at all which does Sosua no favours. It may be kidnapping the original OP's question, but nevertheless, a serious redevelopment of Sosua (given that there is no current 'care' of the environment) would be good for the North Coast of the DR imo, even if along the way many pockets are filled up. Or, am I being very naive?

[Seamonkey]

This post has gotten interesting eventhough it has taken a bit of a detour. When I first starting looking at Sosua as a place to invest, I saw potential due to "new money" coming in. The new proposed marina will be great for the economy. Being a sailor, I can honestly tell you that it would be a great new destination for many as there isn't much in terms of service on that coast. Ocean World is pretty, but extremely expensive for the average sailor. I can only hope that the Sosua marina will be affordable.

I've read many negative comments on this forum about how slow business is in DR and how one should stay away from going into business. As we all know, things are slow in most parts of the world, but things will pick up again soon and the travellers will be back. We must weather this storm. The DR is still one of the least expensive places to visit. Anytime you invest money, you must research the proposed venture, no matter where you are in the world. Perhaps it's true that you that one must lower his expectations on the ROI, but as long as you know that going in, there should be no surprises. Life is about taking risks, appreciating each day and meeting new people.

I currently work 60 hours/week and our Canadian Government legally takes 50% of my income for tax...and that is legal? For me, getting into business in Sosua isn't about getting rich, it's about the quality of life, making a decent living and escaping this rat race. ....and the great weather!