Is this to high?

[John B]

For some time now we been looking for a good location to put our salon at. We now located 2 vacant parcels in a good area of town. Both have high traffic and strong anchors. ie: wal-mart,blockbuster video,large clothing stores,and large grocery chains. I contacted the agent in charge with leasing and requested info such as amp's for electrical service and a/c tons for each unit. after 2 letters I still didnt get a straight answer as to these questions.He wants to know what type of business I want to put in first. what I'm asking is do you think that this is to high keep in mind the area we are talking about has a average of over 150,000 cars pass a day plus med average income is $67,000this is what he wrote me. also want to say this is a investment group REIT that leases these units.The unit you inquired about at ******* is 1,550 sf. The base rentwould be $14.00 psf with CAM, INS, and RET another $3.32 psf. That equals$2,237 per month plus sales tax on rent and utilities.In ****** we have a 1,600 sf and a 2,160 sf spaceavailable. The base rent is $16.00 psf and the CAM, etc is $4.50 psf -total of $2,733 or $3,690 per month plus sales tax respectively. Theserates are for as is delivery, but based upon the credit of the entitysigning the lease, there may be some money available for buildout.

[JeffinKC]

John with the area and demographics you have mentioned it sounds reasonable to me. I tell people to look for strong anchors such as the ones you mentioned but also complimentary businesses such as hair, nails, or a gym. Most 1500 sq ft spaces will have a 200 amp service and 3-5 tons of a/c. The agent is probably curious as to why you would need more as most leasing agents and lanlords don't undestand what our business requires

[John B]

Thanks again for your opinion Jeff, I spoke with him briefly and he thought there was only 100 amp service. I didnt want to tell him just yet about the salon because last time I spoke with a person such as him they took my idea and told another to hurry and open in the area. I would think that they would be willing to upgrade the amp's and electrical since I'm willing to sign a 5 yr lease. the location is perfect. I also feel like I should be asking for some build out help as well as 2 months free rent. when you add the numbers up that's very little out of their pockets for how much rent they will get from me on a yearly basis. any suggestions as to what I might ask for? is it common to ask for these things from the lessor? thanks again.