How not to be a landlord
Café Tu Tu Tango's problem is mainly a landlord who keeps raising the rent. They would rather see an empty storefront than work with a tenant who has been there faithfully for 19 years. The owner of CocoWalk is fairly new. They don't seem to care about the mall, the tenants or the residents or visitors of the Grove. Raising the rents every chance they get is really stupid. Especially the way the economy is these days.They don't get the fact that Tu Tu Tango brings business to CocoWalk. Regulars come in, they eat, drink, buy art and wander the mall and Grove spending money. I was told that Tu Tu Tango was losing $330,000 per month, but I think that figure must be $33,000 per month. Between the cost of running the place (the electricity, staff, food, supplies, etc.), the rent keeps going up and up to ridiculous levels.
A few other high profile clubs may not be there much longer either. Rising rents is the reason along with structural problems that are ignored. Did they try to repair anything after Hurricane Wilma?
Can Fat Tuesday be next? What about the other clubs or restaurants? I'm disgusted over this.
To voice your opinion, you can reach the manager of CocoWalk here: rtorres@cocowalk.net or 305-444-0777 ext. 12.
posted by Tom Falco at 9:13 AM
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14 Comments:
Unless the company is run by idiots... which can happen... at some point they will get the message.
I wonder if property managers ever do pricing elasticity curves or if those things went out of style ages ago? That was MBA 101 for us.
did they elaborate on the "structural problems" from Wilma? seems a little vague as for a reason to get out of their lease.
I'd like to say that the first commenter was right. However, if the landlords of Coconut Grove have proven anything, it's that they don't get those messages. The Mayfair continues to be a perfect example of this fact.
I've dealt with several grove landlords over the years and my sense is that they operate under the "greater fool theory." Although it seems logical that landlords would ask for reasonable rents to ensure they have good tenants for a long long time. This is simply not the case it seems.
My experience with the grove landlords has been that they know they will eventually find someone to pay "excessive rent." And, although they will most certainly fail in the long run, the landlord will still collect the personal guarantee and eventually find another fool to pay such high rents.
It's a shame.
Another indication of how bad things are. We will miss the uniqueness of Tu Tu. The local artists, etc. In my opinion
A bird in the hand.........
Silk, try walking on the floor and standing there when it rains. It's like Niagara Falls.
Don't blame the victim. PLEASE.
The commenter above is right. I was there during the Art Festival this year and when I walked to use the bathroom there was a section of flooring where I literally sunk in. I have to imagine that a large overweight person probably wouldve fallen thru the floor there.
I still cant believe this place is gonna be gonzo soon. I noticed a pretty decent decline in patrons on my last few visits but I figured it was just an off night on those nights. Damn shame.
The Grove does seem to be full of idiot landlords. The demise of the News Cafe behind Mayfair strikes me as the #1 example. I loved the place. But, independently, it was always full of people and, I imagine, a thriving business.
They got out, this silly Italian hoity-toity restaurant comes in... and out in what seemed the wink of an eye. It has never done anything else!! What kind of return is that?
Amazing
Actually, I couldn't care less about Tu Tu Tango. Nevertheless, I am always amazed at the Grove's landlords and that's why my comment about the News Cafe. I can't even imagine why a landlord would rather see a place empty, knowing that he/she will have to pay build out costs to the new tenant and keep it empty rather than reaching some sort of agreement with the actual tenants.
Just do the math. Say you rent a place for $1,000 per month. If the old tenant moves out and you have the place empty for one month and then have to pay buildout costs equivalent to another month, this is real out of pocket money $2,000. If you rent to the new tenant at $1,500, which is a whopping 50% increase, you need an entire four months just to break even. Have the place empty three months and you won't break even for almost a year.
From the point of view of a straight business transaction, it seems very shortsighted.
Yep, today the Grove is brimming full of vain business and regular people.
I can say from personal experience that the last poster is right about Robert Masrieh. He is the quintessential Grove landlord who doesn't seem to mind the constant turnover of unremarkable tenants, all in the name of excessive rent.
When I was younger and naive, I rented from him. The irony however, is that he truly believes he is the Grove's strongest advocate. In actuality, it is landlords like him that the grove cannot seem to regain any traction.
at come point, don't all the empty units become a public nuisances. Maybe its time to sue their a$$.
There's also a Tu Tu Tango in Atlanta, my home town. I live in the Grove and love going to Tu Tu Tango even though I have noticed the loose floors and such. I have taken many visitors there who have all loved and appreciated it. It is a real shame.
I wrote a radio ad for the Orlando Tu-Tu Tango, back in the early 90s. I always thought that it was a chain.
The Lease defines terms.
A Landlord and Tenant (businessmen) have to know when to walk away from a deal.
Nobody should sign a Lease they cannot afford and then complain its too expensive.
Rental increases are agreed upon when the Lease is signed. Rental Increases aren't solely due to the Landlord's greed; real estate has boomed in Miami since 1990, plus inflation.
The $94m Landlord wants to upgrade tenants and can afford to sit empty.
Cafe Tu Tu Tango is for children.
This writer said, "High Profile Clubs"... is that the club upstairs with the children getting arrested??
And the writer condescendingly asked, what did the landlord do after Hurricane Wilma. Hurricane Wilma was in 2005 and the new Coco Walk owner was in 2006 and did $7m in upgrades. Obviously the writer's ignorant slander doesn't land him/her a real job with a reputable publication, only for this online blog :P
The writer is probably someone who eats paint at Tu Tu and punches the bag at Fat Tuesdays. Maybe he's the homeless guy who was kicked out from one of the empty spaces when the new Coco Walk owner took over.... Everyone should pray Fat Tuesdays is next!! ;)
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