January always lends to a couple of restaurant closures. Operators of struggling establishments will get through December, traditionally a great money making month, and close in January, just before the slow season begins. This year was no exception.
The two largest closures include Max’s Diner in San Ramon and Mama Rosa Pizza and Pasta in Pleasanton. Both high traffic locations with great visibility. A third closure was The Cove, a newer restaurant located in the Bernal Plaza just across from the street from the new Safeway Center on Bernal and Valley Avenue. You might remember this used to be Rage Burger previously.
According to an article written by the local Patch.com, the operator of Max’s in San Ramon blamed the high rent for the closure. The space is large by typical restaurant standards at 6,500 square feet. The space is being marketed for lease at the moment with a number of suitors showing interest but no deal on the table as of yet. The asking rent, a staggering $31,000 per month when you add the base rent and triple net expenses.
The space located at Bernal Plaza in Pleasanton has already been leased. The quick turn around is due in part to both a smaller size space (2,900 square feet) and lower lease rate because of the class “B” location. Look for a new sushi restaurant to open in this location.
Commercial rents are no doubt on the rise. Supporting comparable deals in the market include the recently completed lease in the former Macaroni Grill at Dublin Hacienda. With over seven offers on the building competition is steep for prime locations with restaurant infrastructure.