I'm not too optimistic about Tanofran, to be perfectly honest. I think that was another instance where Parsi jumped the shark a bit.
The LOI claims to have offered full build out. Not sure what else is the sticking point -- it shouldn't take nine months to negotiate lease terms. If the mall owner is offering 100% build out, you're not going to get everything you want on the lease end, too.
Tanofran already has a few "anchor" tenants, namely Target, Toys R US, and a movie theater. It also has Victoria's Secret, Petco, and a bunch of popular chain restaurants.
Parsi's claim that mall owners NEED Giggles to bring in foot traffic might be true for the malls that are abandoned, but if he wants to continue to put Giggles in higher end malls like the new Century City location, Glendale Galleria, etc, he has to realize that his negotiation leverage is going to be significantly reduced. Are those malls hurting a bit? Sure. But Giggles isn't going to bring in more traffic than an Apple store, or a movie theater, or a Target.
Classic example of a CEO who is so in love with his business (and himself) that he fails to see the true market value of his company. If Tanofran offered full-build out costs, expect to pay more in rent. If they offer lower rent, expect to pay more in build out.
Otherwise, go to the mall 10 miles away with the JC Penny, Payless Shoes, the vacant Radio Shack and K&B Toys, and the food court with a Sbarro and Orange Julius. They'll probably give Parsi everything he wants and more. And if those malls suddenly become full of new stores, and patrons, then Parsi has the leverage he needs to negotiate on his terms at the higher-end locations.
