Upscale, hands-on axe throwing entertainment has arrived in the Denver Metro area! When you get a chance, check out Yukon Axe in Westminster for a memorable social or team building outing.
Our client has a great track record operating experiential entertainment concept venues, including escape rooms, in Colorado and several other southwestern and western states. We were pleased to work with him on his latest venture, as he tapped into one of the hottest recent active entertainment trends in the country. He asked us to help identify the ideal location in or around Denver for his axe throwing entertainment establishment and then negotiate an advantageous lease.
To make a long story short (and we’ll present the longer version below!), Yukon Axe opened earlier this month in Orchard Town Center, Westminster, CO, alongside other upscale dining, shopping, and entertainment experiences in this vibrant, outdoor mall location.
This was another recent example of how we provide commercial real estate (CRE) services, representing our clients with what we feel is a unique partnership approach.
The Consultative CRE Approach
Our collaborative CRE service model is grounded in our diagnostic approach to each transaction, our expertise and mutual trust. Both we and our clients need to fulfill our roles while respecting each other’s expertise. Together, we work through challenges – including even diverging viewpoints – to reach an outcome that’s often better than either one of us could have envisioned.
It’s the client’s responsibility to be very informed about their industry or niche and help us understand their priorities and preferences, including their “must-haves,” “nice-to-haves,” and “can’t haves.”
As their consultant, it’s our responsibility to uncover opportunities that meet these layered requirements. When we find a possible option, we put it under a magnifying glass to see how the details stack up in all respects compared to the ideal.
But the relationship goes deeper than this kind of transactional arrangement. We hold each other accountable. At Fountainhead Commercial, our clients will hear us say, “Don’t get emotionally tied to a property.” “Keep all options open (in your mind) until the ink is dry.” “Create a plan and then execute the plan.”
For example, during the journey, there may be times when a client focuses on one property option and starts to rationalize the absence of certain “must-haves”. Also, when a commercial deal takes much longer than hoped, “deal fatigue” can set in, to the point where the client may react in one of two ways: They either throw up their hands, tempted to walk away before reaching their goal or they’re so eager to begin their venture that they’re willing to compromise on important details to complete the deal.
Thus, part of our job as a consultant is to keep the process and the client front of mind, even reminding them occasionally of their own vision to keep them focused on the big picture. And we expect the client to remind us of these issues, too, if they feel we’ve gotten off track.
Yukon Axe Finds a Home!
This client needed a location that would maximize the right foot traffic with appropriate demographics in an easily accessible property owned by a landlord who understood his vision and was willing to accommodate his unique business concept. He also wanted to minimize ongoing rent costs and out-of-pocket construction costs, given the extensive renovations that would be necessary for safety and concept purposes.
Our client had thoroughly researched the world of recreational axe throwing and visited the few venues in the region to help him define his niche. He had well-formed ideas about how he could differentiate and “up-scale” his location to thrive in this space, just as he had with his escape rooms. Based on this intel, he defined the parameters of the property he needed … i.e., the must-haves, the nice-to-haves, and the can’t haves.
Our work began with learning all about those imperatives. Then we conducted extensive locational economic analyses to identify the neighborhoods with properties that could meet his needs – i.e., near corporate offices and concentrated upscale residential developments. We merged those demographic requirements with facility requirements – namely, Class A properties with dimensions and a layout conducive to his operations, easy access, safe parking, synergistic neighboring retail establishments, and, of course, financial terms that would support his profitability.
Over many months in mid-to-late 2021, we visited the most promising locations with the client. The process had its ups and downs, and deal fatigue seemed inevitable when one especially promising situation evaporated into thin air.
It was all for the best, though, because in November of that year, we were excited to tour what would become the ultimate site, a former boutique clothing store at Orchard Town Center. The location matched or exceeded each of his must-haves … and many of his want-to-haves as well!
He was as enthused about the space as we were, so all that remained was to negotiate the best possible lease. After several months of negotiation in the spring of 2022, the landlord agreed to a five-year lease that improved upon their initial offer by locking in:
- 25% more time of rent-free occupancy for construction and renovation purposes.
- A 67% longer abated rent period.
- A 17% higher tenant improvement allowance.
Thanks to these negotiated concessions, our client had a ten-month rent-free period, along with a considerable tenant improvement allowance, giving him the time and resources to do a truly remarkable transformation of the property, which fully materialized by the time of the recent grand opening in early February 2023.
Yukon Axe already is proving wildly popular with families, business groups, and leagues! If you stop by for a beer and to enjoy the glamping food menu while throwing axes, please tell Brian we said “Hello”!
2023 promises to be an exciting year in CRE, with many interesting opportunities for businesses starting up or expanding into new locations! Please contact us if you’d like to discuss how our collaborative approach to exploring CRE opportunities can work to your advantage.
