nego. your Lease - tanTALK

DWhite6872 · 09-27-2004, 08:23 PM

When we submit our LOI we always include the following
800 amps (based on beds ect.)
$10-$15 in TI money
22-25 tons of AC
this is all provided by the Landlord....I just wanted to make sure all of the new salon owners were going for it and do not give in!

Sunstrider · 09-28-2004, 12:01 AM

alot of landlords will laugh at you if you make that type of request, or they will just figure that total into your lease making your price per square foot double. I think it really depends on the company the landlord works for. Up here in the North East most landlords are powered by high corporations and you are responsible for all buildout for your store. We have talked with 6 different commercial estate companys before we got the store we have now and the only way they would pay for new electrical, ac, venting, and etc is if it was figured in our rent. And that would have made our rent each year 34.00 per square foot as opposed to the 17.00 we have now currently.

I think everything you said is great, and I wish that was the way it is, but unfortuneately alot of companies don't think that way. If I had all that included with my signing a LOI I would be happier then a pig in poopoo!!

DWhite6872 · 09-28-2004, 07:56 PM

I guess we are lucky....we have done it for all of the locations so far 7 locations have signed off on it. It usually works best for the new builds not exsisting retail centers. Our DMA rank is 34 so maybe...you are in a bigger market? We did not have to raise the rent to meet the TI money.

tanu01 · 10-02-2004, 07:27 PM

Dwhite's idea may not work for newbee's but it will for established salons if you keep good records.If you can proof your a traffic builder,soon they will be coming to you to expand. Successful strips need traffic.
The last stores that I've done I did not go begging for space,they came to me. The last one that will be 27 units I kept blowing off for 90 days until I got what I wanted.
Your only a small fish if you act like one.
Bob

Steve Underhill · 10-06-2004, 12:19 PM

There is an art to negotiating a lease. You must establish the areas where the landlord is flexible and be creative in your request. Making demands with no flexibility will not get you anything.

DWhite6872 · 10-11-2004, 09:31 PM

But of course...would you like to elaborate for people?

perfecttan01 · 10-11-2004, 10:00 PM

The best bargening power I have found in negotiations is to offer prepay 6 months or 1 year rent.
I realize this is a large sum up front, but this can get you cheaper rent, no deposit, more help with buildout,
possibly no cam, and more.
The good part is, it is also an advantage to you, It gives you a full year of operation without having to worry about this large bill.
I believe if you are unable to afford to pay 1 year rent in advance, you should wait until you are before you
committ to open a salon.

tanu01 · 10-12-2004, 08:24 AM

Very good idea. you cant make any money on intrest right now any way.
Bob

perfecttan01 · 10-12-2004, 05:26 PM

Next time you go to a hardnose landlord to negotiate a lease, mention this option and watch what happens, its magic, in 1 second goes from hardnose to mr niceguy.
{can I pull your chair up for you, would you like something to drink, now all things are negotiable, I am certain we can come to an agreement].

DWhite6872 · 10-12-2004, 07:50 PM

I like that....

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09-27-2004, 08:23 PM	#1 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 3,646 Rep Power: 0	When we submit our LOI we always include the following 800 amps (based on beds ect.) $10-$15 in TI money 22-25 tons of AC this is all provided by the Landlord....I just wanted to make sure all of the new salon owners were going for it and do not give in!

09-28-2004, 12:01 AM	#2 (permalink)
Sunstrider Join Date: Sep 14 2004 Posts: 16 Rep Power: 0	alot of landlords will laugh at you if you make that type of request, or they will just figure that total into your lease making your price per square foot double. I think it really depends on the company the landlord works for. Up here in the North East most landlords are powered by high corporations and you are responsible for all buildout for your store. We have talked with 6 different commercial estate companys before we got the store we have now and the only way they would pay for new electrical, ac, venting, and etc is if it was figured in our rent. And that would have made our rent each year 34.00 per square foot as opposed to the 17.00 we have now currently. I think everything you said is great, and I wish that was the way it is, but unfortuneately alot of companies don't think that way. If I had all that included with my signing a LOI I would be happier then a pig in poopoo!!

09-28-2004, 07:56 PM	#3 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 3,646 Rep Power: 0	I guess we are lucky....we have done it for all of the locations so far 7 locations have signed off on it. It usually works best for the new builds not exsisting retail centers. Our DMA rank is 34 so maybe...you are in a bigger market? We did not have to raise the rent to meet the TI money.

10-02-2004, 07:27 PM	#4 (permalink)
tanu01 "The Man" Join Date: Mar 4 2003 Location: ohio Posts: 4,015 Rep Power: 23	Dwhite's idea may not work for newbee's but it will for established salons if you keep good records.If you can proof your a traffic builder,soon they will be coming to you to expand. Successful strips need traffic. The last stores that I've done I did not go begging for space,they came to me. The last one that will be 27 units I kept blowing off for 90 days until I got what I wanted. Your only a small fish if you act like one. Bob

10-06-2004, 12:19 PM	#5 (permalink)
Steve Underhill Join Date: Apr 21 2004 Location: Frisco, TX Posts: 1,502 Rep Power: 21	There is an art to negotiating a lease. You must establish the areas where the landlord is flexible and be creative in your request. Making demands with no flexibility will not get you anything.

10-11-2004, 09:31 PM	#6 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 3,646 Rep Power: 0	But of course...would you like to elaborate for people?

10-11-2004, 10:00 PM	#7 (permalink)
perfecttan01 Join Date: Aug 31 2002 Location: U.S.A. Posts: 491 Rep Power: 22	The best bargening power I have found in negotiations is to offer prepay 6 months or 1 year rent. I realize this is a large sum up front, but this can get you cheaper rent, no deposit, more help with buildout, possibly no cam, and more. The good part is, it is also an advantage to you, It gives you a full year of operation without having to worry about this large bill. I believe if you are unable to afford to pay 1 year rent in advance, you should wait until you are before you committ to open a salon.

10-12-2004, 08:24 AM	#8 (permalink)
tanu01 "The Man" Join Date: Mar 4 2003 Location: ohio Posts: 4,015 Rep Power: 23	Very good idea. you cant make any money on intrest right now any way. Bob

10-12-2004, 05:26 PM	#9 (permalink)
perfecttan01 Join Date: Aug 31 2002 Location: U.S.A. Posts: 491 Rep Power: 22	Next time you go to a hardnose landlord to negotiate a lease, mention this option and watch what happens, its magic, in 1 second goes from hardnose to mr niceguy. {can I pull your chair up for you, would you like something to drink, now all things are negotiable, I am certain we can come to an agreement].

10-12-2004, 07:50 PM	#10 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 3,646 Rep Power: 0	I like that....

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