An A.H. Riise liquor store will be a prominent tenant inside the new Red Hook ferry dock, A three-year-lease for the store, in 60 square feet, was approved this week by the V.I. Port Authority. Riise will pay $12/foot and 15% of its sales, the Virgin Islands Daily News reported.
Other tenants in the Urman Victor Fredericks Marine Terminal have flat-rate deals. Three food sellers will pay $75/foot ($843/month), and a St. John ferry company (Transportation Services)
will have office space and counter space at $65/foot. Two retailers
have also leased about 40 feet, each, at a price of $65/foot, which
works out to about $215/month.
While these per-square-foot prices sound steep, the monthly "nut" for these small businesses is easily managed. In the case of a food vendor, for instance, selling seven sandwiches a day will cover the rent.
These are prime locations and a percentage rent deal, as the Authority did with Riise, would make a lot more sense. But, let’s be honest folks, that would also mean the sellers would have to give receipts and keep records.
Well, it will be nice to pick up that duty free box on the way off the ferry. $12/foot and 15% of sales is an interesting approach… at least it keeps fixed costs and seasonality down, by shifting the expense directly to the consumer.
Cheers, RickG