Gonna have to move the Shop or shut it down

Kevin Wilkins

Kevin Wilkins

Joined
Oct 7, 1998
Messages
1,513
For some months rumors have been going around that the owners of the commercial property where my shop is located were looking to sell. As of the 1st of January the rumors are reality. The entire complex has been sold to a company who plan to clear out all renters and convert the old commercial building into luxury living lofts. This affects not only my shop but the three other tenants who all have multiple employees and have been in the building for over 30 years.

Without going into the details, there is nothing we, the current tenants can do about it.

My lease expires in January 2013. I tried to obtain an extension from the previous owners when the rumors began and they turned me down. The new owners will not discuss any extension and I must vacate when my lease expires. I have asked if they would be willing to release me from the lease early if I can find a new space. It would be very difficult for me to pay both rents over months. I hope they will extend me this courtesy.

So now I am starting to search high and low in Berlin for the 80-100 square meters of commercial space I need. If any readers happen to know of anything here in Berlin, shoot me an email pronto! It cannot be located in a building with residential tenants and must be reachable with large, heavy machinery. My Haas TM-1 mill weighs about 1500 kilos.

I would also encourage anyone who wants one of my knives to buy it now if I have it in stock. When things run out, I can't promise when or if I will make new ones. Also, to be honest, I will need every penny to have the finances needed to get out of this situation without loosing my shop. The move alone will cost a good €6000. I must also face facts, if I can't locate a new space in time, I will be forced to sell the machines and cease operations. I can't move and store the stuff.

As of now, I can longer accept Custom orders. This may change as the situation developes.

I want to take this opportunity to thank all my Friends and Customers for your support over the years. Now, with some Real Estate Luck, maybe I can move to a new shop and keep a' going.

(Mods, if this thread belongs in another place, please move it.)
 
With a years time, and knowing that good things DO happen to good people, I am confident a new direction will be OK.

I wish you well, Kevin. Keep us posted.

Jim
 
What??
Kevin- Ben Cardoso moved his shop and is now slowly making knives again. You will be fine. Don't worry.
 
Sorry to hear this and I hope you take this negative and try to turn it into a positive and continue to create custom knives.
I've seen dire situations like this result in the business person ending up bettering their position after all said and done.
Try to look at it as an opportunity.

For example, a developer is about 70% complete on a new prototype retail property with strict deadlines when a hurricane washes it into the ocean.
At first seems like an unrecoverable event, however during rebuild very favorable changes are implemented that earn the developer very high marks that will greatly improve the entire project going forward.
 
Kevin that is a bummer the same thing happen to me about 11 years ago but my landlord was not so kind as to give us a year to find a new space we had 3 months when I say we I mean there was at lest 8 shops in this old warehouse and at lest 5 of us ended up in the same new place where I have been for the last 11 years . So the best thing you could do is look for another big old empty space rent the whole space for 40 cents a SQ foot and leas it to all the folks in your old space for 60 cents a SQ foot get your space free and make some money as-well this can work I know as I pay a 90 cents a SQ foot to the folks paying 60 they seem to have done very well and I am just glad to have a space with over head cranes. good luck think. BIG Building
 
Man, that sucks. Where in Berlin is you shop? Any chance that a lot of stuff might be opening up around Tiegel in your time frame what with the big airport relocation?
 
Damn Kevin, sorry to hear that!

It would be a very sad day indeed if you had to cease operations!

Good luck!

Kind regards,

Jos
 
Had to look it up but, 100 square meters is only = 1076 square feet. That's about half the size of a typical home, or 2x - 3x as big as a two-car garage.

You could buy land and build a new shop that size here for $50,000 (40,000 Euro). Or buy an existing 5,000 square foot building for $150,000 (120,000 Euro) or less. If you ever considered moving to the States.... We'd love to have you. :)
 
SharpByCoop said:
With a years time, and knowing that good things DO happen to good people, I am confident a new direction will be OK.
Click to expand...
Kevin Jones said:
I've seen dire situations like this result in the business person ending up bettering their position after all said and done.
Try to look at it as an opportunity.
Click to expand...

+1!!! More likely than not, things will turn out even better! Just staying focused and open to new possibilities usually works out GREAT!

Getting the word out and letting EVERYONE in your network of business associates (customers, suppliers, vendors, shippers, utility services, mechanics, dentists, doctors, etc) friends, family, strangers, etc. (EVERYONE!) know what you're looking for can be helpful. It's surprising what might might turn up. Speaking metaphysically, letting the universe know your intentions and your needs gives the universe a chance to fulfill them. Of course, checking in with realtors, property brokers and mangers doesn't hurt either. Placing notes on bulletin boards and "wanted" notices in newspapers doesn't hurt either!

Wishing you the best as you cross the threshold into a new phase of your journey on this remarkable mud-ball we call planet Earth! -- Aloha, Phil
 
Surprisingly, even 20 plus years after reunification and amazing gentrification of the former communist part of the city, Berlin is still not the most expensive city in Germany especially compared to towns like Munich, but that is relative. It still ain't cheap by our standards.
Bob W said:
Had to look it up but, 100 square meters is only = 1076 square feet. That's about half the size of a typical home, or 2x - 3x as big as a two-car garage.

You could buy land and build a new shop that size here for $50,000 (40,000 Euro). Or buy an existing 5,000 square foot building for $150,000 (120,000 Euro) or less. If you ever considered moving to the States.... We'd love to have you. :)
Click to expand...
 
Buying land and building a building here is, well, not going to happen. The bank would want 40% cash upfront and honestly, it would be a stupid move. I'm lucky if I meet costs and make tiny profit making knives. Land here easily costs €300 a square meter if you can find anything. You need many 100s of thousands of Euros. The complex where I was located sold for over €2 million and the renovation costs will be gut and rehab. Word is a very wealth English Lord is behind the company who bought our place. All trails as to who hit a dead en in the City of London. Doesn't matter really.

Rents here are still OK in comparison with other German cities. I don't want to publish exact details of my financials for the world to read, but let's say if I could find space here for 40 cents a square foot, you'd hear me shouting "Yipee! I'll take it!!" all the way over in Idaho. (An example, a company I know had about 1800 square meters and were paying around €11,000 a MONTH rent.)

I have been looking at larger spaces together with my neighbors. If we can get a good space that can be partioned and each has their own lease, we will certainly go for it. I can't get in any situation where if somebody missed the rent I might have to step in for and extra €2000 that month. Not gonna go there. Basically my neighbors (and myself to some extent) had been hoping things might somehow be different ... we have no more hope in that directon after last week.

I have been working to find alternative spaces and will be really going after it now. One thing I cannot do is loose focus: knifemaking is a job for me, if I make money at it, I can go on, if not I can't. Simple as that. If the costs rise higher than the possible revenue, then it's like paying your boss every week instead of getting a paycheck.

I do think there is a chance I will find a way to keep going. Maybe even a better location! Things like this do often turn out to be Blesings in Disguise. I'm keeping my eyes on the Road and my hands on the Wheel!
 
Kevin Wilkins said:
I do think there is a chance I will find a way to keep going. Maybe even a better location! Things like this do often turn out to be Blessings in Disguise. I'm keeping my eyes on the Road and my hands on the Wheel!
Click to expand...
:thumbup::thumbup::thumbup::thumbup::thumbup:
 
Good luck Kevin! Please don't stop, we need more Wilkinsgrips! Your work is fantastic and it would be truly missed.
 
I'm looking for a space, hopefully they new owners will allow me to get out of my lease early when I find a place. The real killer for any small business is fixed overhead. If I can find a space where I can operate for the next 5 plus year minimum at a rent I can pay AND still make a profit... that's the hurdle. If I find the space, somehow I will manage the move...
 
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