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sunsally · 07-28-2006, 06:36 PM

As was mentioned:

1. Try to find out what other tenants are paying and what "extras" they negotiated.

2. If you are working with a broker, ask them what is "standard" for your area. If you are not working with one, try finding a commercial realtor that wants to talk to you (but understand, if you say you already have your spot picked out and are negotiating - e.g. so they won't be getting any commission on you - they may not give you a lot of their time).

3. With new construction - and sometimes existing - you can sometimes negotiate "T.I" money - "Tenant Improvement". Basically, since what you do has a "value" to the landlord (since they own it when you leave), they may give you some of the cost upfront as a negotiating point. In my market $10/s.f. (so $12,000 on a 1200 s.f. space) is somewhat normal, and up to $20 is possible.

4. Instead of, or in addition to T.I. money, consider asking them to do some of the "big stuff". The most likely/typical for tanning salons are extra Amps and/or HVAC. A typical 1200 s.f. space will come with 200A of electric -- you'll probably need at least 400A. Ditto it will probably come with 3 tons of AC - and you might need more like 7 depending on what kind of equipment you're using and what part of the country. So having the landlord pay for that -- especially if it is new construction and he can just have HIS contractors add it when they are building the shell - is oftentimes not as expensive then (to the landlord) as it would be for you to add later.

5. Again -- figure out what "local standards" are, but 1 month of free rent is NOT enough to get your buildout done. You need to pull permits, get inspections, get your beds all in and installed, etc etc etc. It will ALWAYS take longer than you think -- but for sure more than 30 days. I got 4 months or business open -- whichever came first.

07-28-2006, 06:36 PM	#15 (permalink)
sunsally www.highlinecapital.com Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter! Posts: 2,508 Rep Power: 8	Re: Lease negotiations? As was mentioned: 1. Try to find out what other tenants are paying and what "extras" they negotiated. 2. If you are working with a broker, ask them what is "standard" for your area. If you are not working with one, try finding a commercial realtor that wants to talk to you (but understand, if you say you already have your spot picked out and are negotiating - e.g. so they won't be getting any commission on you - they may not give you a lot of their time). 3. With new construction - and sometimes existing - you can sometimes negotiate "T.I" money - "Tenant Improvement". Basically, since what you do has a "value" to the landlord (since they own it when you leave), they may give you some of the cost upfront as a negotiating point. In my market $10/s.f. (so $12,000 on a 1200 s.f. space) is somewhat normal, and up to $20 is possible. 4. Instead of, or in addition to T.I. money, consider asking them to do some of the "big stuff". The most likely/typical for tanning salons are extra Amps and/or HVAC. A typical 1200 s.f. space will come with 200A of electric -- you'll probably need at least 400A. Ditto it will probably come with 3 tons of AC - and you might need more like 7 depending on what kind of equipment you're using and what part of the country. So having the landlord pay for that -- especially if it is new construction and he can just have HIS contractors add it when they are building the shell - is oftentimes not as expensive then (to the landlord) as it would be for you to add later. 5. Again -- figure out what "local standards" are, but 1 month of free rent is NOT enough to get your buildout done. You need to pull permits, get inspections, get your beds all in and installed, etc etc etc. It will ALWAYS take longer than you think -- but for sure more than 30 days. I got 4 months or business open -- whichever came first.