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High Retail Bay Area Rent

Dubbington

Dubbington

Slamdunk Champion
Joined
Jul 15, 2007
Location
East Yay
Moto(s)
EX Street Triple ;(
Name
Dubs
Lucky's in San Ramon closed in September, Chilis closed and Max's diner off crow canyon closed.

Is this all due to crazy high retail rent? I started my 7+ year grocery career at that Luckys. It couldnt compete with Safeway and Costco and Whole Foods, too big for its own good.

Anyone have a guess how much the rent for Max's 6,500 sqft is?




$31,500 a month!!! That's downtown Disney prices.
 
Places over here in Campbell have been closing up for the same reason

Pruneridge had Hobee's, Boswell's, and the wine bar close up specifically due to rent.
 
Do they really expect some magic new business to come in and afford higher rent?
 
Campbell was mentioned. When places like Togo move out, nice places move in, then they are recognized as the best in the Bay Area and more money comes in.

When the land loards get burned, the rents will come down. Supply and demand.
 
Yakoo752 said:
Places over here in Campbell have been closing up for the same reason

Pruneridge had Hobee's, Boswell's, and the wine bar close up specifically due to rent.
Click to expand...

I was a sad panda when The Pruneyard let Barnes & Noble go, and replaced it with a sporting goods store. :wtf I would honestly be surprised if it's still in business.
 
The Lucky's and the Chili's are both based on outdated business models. Not surprising they are unprofitable for that location.
 
wazzuFreddo said:
The Lucky's and the Chili's are both based on outdated business models. Not surprising they are unprofitable for that location.
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Dont know anything about Chili's but did read that those type restaruants ie; chevys, applebees, etc are all tanking because faster and cheaper options like Chipotle.

As for that particular Luckys, it used to kickass and do insane business. This was 99-'03 before I left for college. That store became too big for itself. I then managed the Lucky's by the Danville bowl and began to understand Lucky's business model.....don't fix shit and let the stores slowly crumble. I'll bet within 5 years Savemart which own's Lucky's/Albertsons, sells. They're old school and not adapting like Safeway is. Not to mention the other grocery options.
 
The regular grocer business is outdated now that there are more specialized options like Whole Foods, Trader Joes, Fresh and Easy, Target. Hell, even the good ol Mexican supermarkets.

I can't remember the last time I was in a Lucky's or a Safeway. :dunno
 
wazzuFreddo said:
The regular grocer business is outdated now that there are more specialized options like Whole Foods, Trader Joes, Fresh and Easy, Target. Hell, even the good ol Mexican supermarkets.

I can't remember the last time I was in a Lucky's or a Safeway. :dunno
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Luckys is the closes near my work. I curse everytime forget my lunch as the store has nearly nothing to get for lunch.

Fresh n Easy and Mi Pueblo have both filed chapter 11.

Old boss when I worked Luckys in college said to work for Costco, Whole Foods, or TJ's since they are niche. The dinosaurs (lucky, safeway, ralphs) wont last
 
Dubbington said:
Luckys is the closes near my work. I curse everytime forget my lunch as the store has nearly nothing to get for lunch.

Fresh n Easy and Mi Pueblo have both filed chapter 11.

Old boss when I worked Luckys in college said to work for Costco, Whole Foods, or TJ's since they are niche. The dinosaurs (lucky, safeway, ralphs) wont last
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Safeway is in CA, Hawaii and the dc area and probably others. They have adapted fairly well. Out of those you listed I could see it sticking around the longest.

As for chain restaurants like chilis and Applebee's wgas. I can't remember a time I chose to go to one. On the road I'd rather hit up a local diner or even a Dennys before one of those places.
 
UDRider said:
Do they really expect some magic new business to come in and afford higher rent?
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Yup, they sure do. Insane ain't it? Even dirty hippy town Santa Cruz has quite a bit of vacant retail space for rent downtown.
 
We decided to go to Chillis for dinner and read their notice on the door. The notice was about how Chillis appreciated our patronage. Because of their restructuring this Chillis is closed. OK

Next hear Max's closed and sought news about the closing. It was straight forward after their lease ran out Years End they went bye bye to 39k/mth rent. It caught workers by surprise there was no warning beforehand.
Now our Max's fix is going to have to be on the way back from Reno to stop in Auburn's Max's.

The big Luckystore was a monster store. We pull up looking to get some Value packages only they carry. Looking past papered up windows could see the place was emptied. crap wth :wtf
Article told a story about a Store that wasn't getting the traffic needed to support the place. Thinking back it was true, there isn't the same volume of shoppers seen at other stores in the area.

The area is like a City Center with all the Business offices nearby. $39k/mth must be what they get for prime location. Could be Chillis had the same high rent as Max's that was a big reason they closed.
 
6500 sq ft is too much for that type of restaurant (Max's), especially with a parking lot as jacked up as that. That pad will be split, and two tenants will move in.
 
It's sad. My buddy lost his (bakery) business of years because the new owners jacked up the rent to TRIPLE of what the previous owner charged.

Ever since then, the place has not had a stable business there. I hope the new landlords go broke for being such greedy @#$%'s.
 
wazzuFreddo said:
The regular grocer business is outdated now that there are more specialized options like Whole Foods, Trader Joes, Fresh and Easy, Target. Hell, even the good ol Mexican supermarkets.

I can't remember the last time I was in a Lucky's or a Safeway. :dunno
Click to expand...

I usually dont go to Safeway for their produce, but I still go there for most staples and their meat selection. Im one of those people that doesn't drink the WF or TJ kool aid.
 
Hooli said:
I was a sad panda when The Pruneyard let Barnes & Noble go, and replaced it with a sporting goods store. :wtf I would honestly be surprised if it's still in business.
Click to expand...

Let them go? Barns and noble folded because they can't compete with amazon etc. I didn't even know there was one in there till I visited the sports basement that took over the space.
 
Agent Orange said:
I usually dont go to Safeway for their produce, but I still go there for most staples and their meat selection. Im one of those people that doesn't drink the WF or TJ kool aid.
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What's wrong with TJs? They don't have everything but its good stuff and relatively cheap.
 
Nothing, I just dont shop there for the same reason people dont shop at any particular place. They just have a niche customer base and Im not one of them.
 
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