Rappaport Retail Report

Brokering. It’s a speculative and difficult job. And one whose do or die pay structure too often delineates how it is done. Doing it well demands defining and embracing the profession’s essential duality. More than finding space, more than being knowledgeable, more than being available and attentive, more than being scrupulously honest, there is one ability all successful brokers must possess. We must be diplomats. This means far more than being able to couch a potentially painful concept to someone in soft language. What we must be able to do is open the eyes of each side to the others needs, and show how small accommodations lead to implementation of larger goals. Then we must translate this clarity into a written agreement. Diplomacy then devolves in to therapy as we soothe the wounds of obstinacy inflicted during the bumpy run to the finish line of lease execution.

The question posed by some landlords, often in less than genteel tones, – “Who is paying you?” speaks to the essential issue of our jobs. The correct answer is NO ONE, unless of course, a deal is done. We are not paid to find someone for a space, or find a space for someone, but to broker a deal between two parties. We have done our job only if we get paid, and we only get paid if we bring two parties together to execute a lease. This gets more complicated when lawyers and architects enter the mix. So for landlords, the answer is, you are paying me if I get you a deal in spite of yourself. We must find the most diplomatic way of imparting the idea that just because a landlord is good at buying buildings, it does not mean that they are as good at closing leasing deals with tenants. The same holds for tenants. An owner of a retail business might have some experience doing deals and working with people. However, that does not make them a lease negotiator and closer. So the honest answer to that question is, I do not work for the landlord, nor do I work for the tenant. I work for the DEAL

Brokers must diplomatically defuse tensions that arise when emotions flare at moments of impasse. The end of the lease negotiation period is always the most difficult. Weariness of the process, and perceived slights caused by the sense of giving in too much always threaten the end game. Bringing it home then and being able to close, is what separates successful brokers from stymied ones. The key here is to get both sides so angry at you for being so persistent that any residual animosity gets deflected to you. Opposing parties become partners in getting the deal done.

We should embrace rather than avoid the duality of our role, and be able to intelligently and openly explicate it to all sides. The best analogy is to a diplomat. They are employed precisely for their skills/abilities at being able to open the eyes of both sides to the needs of the other. Diplomats clarify to their own governments how a small accommodation to the needs of another nation creates a reciprocal situation, and therefore an atmosphere of amenability conducive to agreement. Openness and honesty creates trust. And trust does deals.

The daunting task of negotiating the maze of city agencies has gotten easier. As reported in the New York Times article of December 28, 2010, before opening, a new food business might have to face up to 11 different departments, and secure up to 30 different permits, registrations, licenses, and certificates, and pass 23 inspections. The New Business Acceleration Team helps new restaurateurs through the jungle of the permitting process.

According to administration officials, the 200 establishments serviced so far, have opened, on average, 10 weeks faster than planned. Nice, considering how little free time is often offered in a new lease. Currently the team is comprised of four inspectors, plus supervisors from agencies that issue permits, like the Depart of Health, Department of Buildings, Fire Department and Landmarks. The hope is that at one point there will be a single restaurant license that would replace all others. A long range goal is something like a Mayor’s Office of Hospitality.

NBAT works with qualifying businesses to schedule and coordinate most required inspections and, when appropriate, to schedule multi-agency inspections on the same day. For example, NBAT works with the Bureau of Fire Prevention to ensure the timely submission of plans and equipment documentation as well as provide inspections regarding range hood devices and other hazardous installations. NBAT inspectors are also trained to conduct Department of Environmental Protection grease interceptor inspections ensuring that grease traps are correctly sized to handle grease discharged by cooking and kitchen equipment. NBAT works with the Depart of Health to ensure that all food service establishments are properly permitted and operating safely. NBAT, and the Department of Buildings, work together to ensure the safe and lawful use of buildings and properties while facilitating the issuance of Certificates of Occupancy and Place of Assembly permits.

The ideal participants in this program are generally; new restaurants, bars, bakeries or butcher shops seating 50 people or less. Qualifying bars must serve food. However Batali’s mammoth Eataly found a way to be serviced. While a new venture, it is hardly a small place, and ownership is hardly inexperienced. As always, there is a way around certain limiting requirements. Therefore I suggest all who are opening a new food business to seek this valuable help. For complete information, as well links to the specific city agencies involved, go to: http://www.nyc.gov/html/nbat/html/about/about.shtml

Good luck- get picked and get open quick.

Get ready for the best new concept since Mac and Cheese elevated to cult status a few years back. Sources say that soon, Nocavore, the ultimate reaction to food pretension poised as politics, will be ready to go, in an undisclosed, downtown location. Promising “Nothing Nearby, Nothing Natural, Never” they hope to be a Mecca for the many recoiling from food as foreign policy.

Ingredients from the best brands will be represented, the real heirlooms; Kraft American cheese, canned fruit from Dole, and Ham from Hormel. The menu is yet to be announced, but Spam will be in there somewhere for sure.

Nocavore promises a refreshing return to simple dining. It looks to be a huge success. After all people vote with their feet, and resent being told what to eat.