Who benefits financially from retail spaces?

A comment was recently left about who benefits financially from the retail spaces below some of the new developments:

Another factor that disuades me from the Vulcan projects is that unlike the Lumen, for example, where QFC’s rent contributes to the homeowners association (IOW, the building), it is my understanding that Vulcan will retain control of all of the retail space and the homeowners association gets nada.

Does anyone know more about situations like this?

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Matt , Urbnlivn's publisher, has a love for lofts, floating homes and mid-century moderns.

For years Matt resisted becoming a real estate agent preferring to be an executive in the startup world but he recently caved in the spring of 2014 and became an agent.

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  • anonymous

    Really? at 58 cents per square foot I think, my dear friend, that YOU are in fact paying QFC’s lease. Who has more leverage in negotiations with the developer? A major grocer and anchor tenant (with a loyal swarm of corporate lawyers and brokers) for a new development in Seattle’s “not a neighborhood” – or… you?

    Retail is good. But it doesn’t pay your HOA dues.

  • anonymous

    Really? at 58 cents per square foot I think, my dear friend, that YOU are in fact paying QFC’s lease. Who has more leverage in negotiations with the developer? A major grocer and anchor tenant (with a loyal swarm of corporate lawyers and brokers) for a new development in Seattle’s “not a neighborhood” – or… you?

    Retail is good. But it doesn’t pay your HOA dues.

  • Peckham

    Thank you for your uniformed comments. I have actually talked with people involved in the management of the Lumen, and like [some] other buildings, the retail space is treated much like other units in the building, with payments to the HOA made in similar fashion. This is in contrast to the Vulcan projects.

  • Peckham

    Thank you for your uniformed comments. I have actually talked with people involved in the management of the Lumen, and like [some] other buildings, the retail space is treated much like other units in the building, with payments to the HOA made in similar fashion. This is in contrast to the Vulcan projects.

  • traver

    Interesting. I’d like to see Lumen’s budget – specifically, what $0.58/sft is going. Is it going towards the gym that, from my understanding, you have to pay for in ADDITION to hoa dues? Massive reserve accounts? Where’s it all going?

    It’s like some kind of 2+2=5 logic. Someone is misleading you, and I know it isn’t me because I have nothing to do with Lumen. You just have to look at the situation and think, “what makes sense here? Is my building’s insurance premium twice the normal rate? Is my mgmt company gouging the HOA? Does my concierge make $120,000 per year? Or, as part of agreeing to put a huge grocery store in a weird location, did the grocer negotiate a CHEAP lease? Did the developer jack up the dues to supplement the lease, knowing that they could market ‘the coolest QFC in Seattle’ as part of Lumen?” I’m not saying QFC doesn’t pay dues. I know they do. But I believe that: a) HOA contributions aren’t the reason that street level retail is good, and b) even if you disagree with point “a”, Lumen is the worst example possible to justify that rationale.

  • traver

    Interesting. I’d like to see Lumen’s budget – specifically, what $0.58/sft is going. Is it going towards the gym that, from my understanding, you have to pay for in ADDITION to hoa dues? Massive reserve accounts? Where’s it all going?

    It’s like some kind of 2+2=5 logic. Someone is misleading you, and I know it isn’t me because I have nothing to do with Lumen. You just have to look at the situation and think, “what makes sense here? Is my building’s insurance premium twice the normal rate? Is my mgmt company gouging the HOA? Does my concierge make $120,000 per year? Or, as part of agreeing to put a huge grocery store in a weird location, did the grocer negotiate a CHEAP lease? Did the developer jack up the dues to supplement the lease, knowing that they could market ‘the coolest QFC in Seattle’ as part of Lumen?” I’m not saying QFC doesn’t pay dues. I know they do. But I believe that: a) HOA contributions aren’t the reason that street level retail is good, and b) even if you disagree with point “a”, Lumen is the worst example possible to justify that rationale.

  • 2200isSlow

    What to expect when buying your condo. I am purchasing a 2200 unit. There was some delays and this is the Response, on email to those of us purchasing a unit where “Service is an Address.”

    “A large development such as 2200 has many components that come together at the very end of construction. It can be likened to cooking a 7-course meal for 261 people, working to plan every side dish, beverage and main entree so that it all comes together at the same time for every guest. As we finish the construction, our individual unit completion schedule shifts and changes.”

    So to prospective buyers of any Vulcan Condos, note the proposed closing dates are at best that. You give up your cash, sit and wait and do not even receive a sorry we’re late, but a lame excuse. So much for Service!

  • 2200isSlow

    What to expect when buying your condo. I am purchasing a 2200 unit. There was some delays and this is the Response, on email to those of us purchasing a unit where “Service is an Address.”

    “A large development such as 2200 has many components that come together at the very end of construction. It can be likened to cooking a 7-course meal for 261 people, working to plan every side dish, beverage and main entree so that it all comes together at the same time for every guest. As we finish the construction, our individual unit completion schedule shifts and changes.”

    So to prospective buyers of any Vulcan Condos, note the proposed closing dates are at best that. You give up your cash, sit and wait and do not even receive a sorry we’re late, but a lame excuse. So much for Service!

  • http://www.conciant.com Mcgill

    If I knew exactly who gets paid, I would have made a deal with him/her :) I own a seperate concierge and all I know is that I’ve tax-ID which hasn’t to be default by the end of every month and year.