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Old 06-08-2005, 09:41 PM   #1 (permalink)
 
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Ok. So I've found a perfect location for my salon. It's an existing strip mall that is adding on about 5k more square feet. The ground broke last week and the timeline looks 4-5 months. The realtor (representing the owner) said to submit an offer this week!

Questions:
Any advise for negotiations? ie. Did any of you negotiate for the owner to subsidize build out?
How much? Figure the lease is a 5 yr term and 4k per month.
(DWhite, I still have the AC and amp requirements you suggested)

Also, the listing realtor said he would help me through without a conflict of interest.... hmmmmmm
Help me. Time is ticking, and I really want this space.
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Old 06-08-2005, 09:50 PM   #2 (permalink)
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Tenant Improvement money $10.00-$20.00 per square foot. Stub plumbimg for the floors ..credits for things you might not use that are standard such as drop ceilings, and lights that we will not use. We also ask for 1 40 inch door. No security deposit, or have it applied to the 13th month of rent.90 day buildout time

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Any Advice given please consider the size of your market![ This Message was edited by: DWhite6872 on 2005-06-08 21:51 ]
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Old 06-08-2005, 10:11 PM   #3 (permalink)
 
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Try and get a clause in that says the owner may not place another tanning salon in the property or any other properties he ownes within a 3-5 mile radius. Many land owners own multiple strip malls.
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Old 06-09-2005, 04:55 AM   #4 (permalink)
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Something I wish I had tried for in the lease was lower payments July - December with higher payments January - June. Just not this June. Belive me you will wish for it when low season comes around.
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Old 06-09-2005, 01:05 PM   #5 (permalink)
 
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There is an art to negotiating a lease. There are many different ways to get assistance. Of course you want to get as much TI allowance as possible. This is easier to do when you are looking at a space that has never been leased.
You can get free rent, sometimes in the beginning sometimes later in the lease term. You can negotiate rent amounts in terms of less than they are asking or even in a progressive rent that allows you to pay less in the first couple of years when you are trying to establish your business. There are times that I have been able to save as much as $40,000 over the term of a lease in the negotiation process.
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Old 06-09-2005, 01:51 PM   #6 (permalink)
 
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I am securing a location as well right now and have negotiated one months free rent to allow time for building the interior to my needs. The owner has been very accomodating! My price for rent on the main street of the city "BROADWAY" is $1.30 per square feet. Very fare price. I am going to sign a three year lease at fixed price! I also got heat included but of course have to pay the electric. He also put down tile flooring for me no cost and we are negotiating a/c requirements.

My question to you is how much a/c is necessary!

Thanks
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Old 06-09-2005, 06:00 PM   #7 (permalink)
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It will take you longer to build out your location...how many beds are you planning on having?
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Old 06-12-2005, 06:38 PM   #8 (permalink)
 
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Quote:Tenant Improvement money $10.00-$20.00 per square foot. Stub plumbimg for the floors

Dwhite:
Please futher define what this means??

I'll give it a shot at what I think it means: [Total Square foot x $10-20] = Tenant improvement

So, if I use $15... = (1,500 x $15) = $22,500 in TI?????

Thanks in advance,
Clint
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Old 06-12-2005, 06:39 PM   #9 (permalink)
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yes..you have it..
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Old 06-12-2005, 07:58 PM   #10 (permalink)
 
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okay. Almost there.
Is the 23K TI paid as a "free rent" credit, ie. reimburesment?, or does the landlord actually pay out contractor/architech costs?
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