Remodeling Building & Negotiating Rent

SunnyO · 12-30-2004, 06:00 AM

The building we're looking at for our salon needs some remodeling. We'll have to rip out the carpet, install new Pergo flooring, put up walls, paint, increase the electrical ampage, install new lighting, and probably a few other things. How do you negotiate rent with the landlord? Do you ask for a certain percentage off of rent for a few months or ask for 3 months of free rent while remodeling? I'm not even sure where to start. Landlord is asking for $850.00 for 1,100 sq. ft. Thanks.

TanningEmporium · 12-30-2004, 07:16 AM

that is cheap rent, but yes, you should ask for buildout time and I would ask for some help with the electrical upgrades, remember when you leave you are leaving upgrades with them, ask for more time if they are not willing to help with the cost. You figure 3 months free rent will not even begin to pay for 3 of the things you are having to do.

tanu01 · 12-30-2004, 07:40 AM

Are you signing a long term lease ? If so, I would ask for a couple of months free. It wont really cover any of your expenses,but you might feel better anyways.
Bob

hockey92 · 12-30-2004, 08:45 AM

I agree with bob... when I did my buildout, I got 3 months free rent...When the electrical was upgraded that is a plus for him in the end.. gives him more people options to rent to... Not that I am going anywhere... I also purchased my additional 5 ton unit, so, in reality I can take it with me when and if I leave, or I can call him up and see if he will give some additional free rent for the cost and installation of my unit..... Haven't done so yet, but thinking about it.

TRTS · 12-30-2004, 09:22 AM

When we looked at leasing our space, the property manager told us the interior would be returned to a "white box". We would be responsible for build out from that point. We did the demo and build out ourselves. They gave us two months free rent. As far as electrical and upgrade in air that was up to us. I think it just depends on the property owner. Some are willing to help more than others. Unfortunately ours isn't as willing as some.

tanu01 · 12-30-2004, 09:28 AM

Any time you get rent for 7 - $800 a month, I would not expect to get anything. The one store I have,rent was going to be $850 a month, I asked for a little give because we were gutting and completly restoring. They let us go for 1 year at $750 a month. That did pay for the new furnace.
Bob

suntanztanning · 12-30-2004, 10:20 AM

I signed a 3 year lease and the landlord did 100% of the buildout. The center I'm in is new and I was the first one in this space. Get all you can. Paying $12.00 psf for 1500 sf.

DWhite6872 · 12-31-2004, 03:25 PM

We look for new builds as well so they provide the amps and air and TI allowance...

sunsally · 12-31-2004, 03:42 PM

1. Put together an itemized estimate of your build-out costs
2. Group them into those more likely to "help" a future tenant (increased electrical, lighting, floors) and those that are more strictly "maintenance" items that will need to be done again later or things that might even have to be ripped out to accommodate a future tenant (painting, tanning room walls). The landlord will generally be more favorably disposed to those that will help him down the line.
3. Ask!

At a minimum, would like them to waive the start of your rent until remedel is re-done (they'll want you to move quickly). Better yet, try to get them to let you have a few months after to "get on your feet".

In your negotiating, hopefully you have also talked to them about how tanning is a "destination location" and the large number of clients you'll be bringing to the retail center that will help the other tenants as well (and make any empty spots the landlord has more attractive to rent to someone else in the future!).

SandiGirl · 01-03-2005, 12:01 AM

Our landlord gave us 3 months free as well but he was also our designer and was there every day guiding us as we did the work ourselves.

$850 is a good deal.

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12-30-2004, 06:00 AM	#1 (permalink)
SunnyO Join Date: Nov 23 2004 Posts: 112 Rep Power: 4	The building we're looking at for our salon needs some remodeling. We'll have to rip out the carpet, install new Pergo flooring, put up walls, paint, increase the electrical ampage, install new lighting, and probably a few other things. How do you negotiate rent with the landlord? Do you ask for a certain percentage off of rent for a few months or ask for 3 months of free rent while remodeling? I'm not even sure where to start. Landlord is asking for $850.00 for 1,100 sq. ft. Thanks.

12-30-2004, 07:16 AM	#2 (permalink)
TanningEmporium Join Date: Jul 15 2003 Location: 213 Skyland Shp Ctr Posts: 4,192 Rep Power: 8	that is cheap rent, but yes, you should ask for buildout time and I would ask for some help with the electrical upgrades, remember when you leave you are leaving upgrades with them, ask for more time if they are not willing to help with the cost. You figure 3 months free rent will not even begin to pay for 3 of the things you are having to do.

12-30-2004, 07:40 AM	#3 (permalink)
tanu01 "The Man" Join Date: Mar 4 2003 Location: ohio Posts: 3,977 Rep Power: 7	Are you signing a long term lease ? If so, I would ask for a couple of months free. It wont really cover any of your expenses,but you might feel better anyways. Bob

12-30-2004, 08:45 AM	#4 (permalink)
hockey92 Looking at my Ta-Tas ..eh Join Date: Aug 31 2004 Location: North Carolina Posts: 3,161 Rep Power: 11	I agree with bob... when I did my buildout, I got 3 months free rent...When the electrical was upgraded that is a plus for him in the end.. gives him more people options to rent to... Not that I am going anywhere... I also purchased my additional 5 ton unit, so, in reality I can take it with me when and if I leave, or I can call him up and see if he will give some additional free rent for the cost and installation of my unit..... Haven't done so yet, but thinking about it.

12-30-2004, 09:22 AM	#5 (permalink)
TRTS Waiting Confirmation Join Date: Apr 12 2004 Posts: 301 Rep Power: 0	When we looked at leasing our space, the property manager told us the interior would be returned to a "white box". We would be responsible for build out from that point. We did the demo and build out ourselves. They gave us two months free rent. As far as electrical and upgrade in air that was up to us. I think it just depends on the property owner. Some are willing to help more than others. Unfortunately ours isn't as willing as some.

12-30-2004, 09:28 AM	#6 (permalink)
tanu01 "The Man" Join Date: Mar 4 2003 Location: ohio Posts: 3,977 Rep Power: 7	Any time you get rent for 7 - $800 a month, I would not expect to get anything. The one store I have,rent was going to be $850 a month, I asked for a little give because we were gutting and completly restoring. They let us go for 1 year at $750 a month. That did pay for the new furnace. Bob

12-30-2004, 10:20 AM	#7 (permalink)
suntanztanning Join Date: Jun 8 2003 Posts: 302 Rep Power: 6	I signed a 3 year lease and the landlord did 100% of the buildout. The center I'm in is new and I was the first one in this space. Get all you can. Paying $12.00 psf for 1500 sf.

12-31-2004, 03:25 PM	#8 (permalink)
DWhite6872 Waiting Confirmation Join Date: Apr 22 2004 Posts: 5,189 Rep Power: 0	We look for new builds as well so they provide the amps and air and TI allowance...

12-31-2004, 03:42 PM	#9 (permalink)
sunsally www.highlinecapital.com Join Date: Nov 23 2004 Location: ITA Member & Berman Supporter! Posts: 2,496 Rep Power: 8	1. Put together an itemized estimate of your build-out costs 2. Group them into those more likely to "help" a future tenant (increased electrical, lighting, floors) and those that are more strictly "maintenance" items that will need to be done again later or things that might even have to be ripped out to accommodate a future tenant (painting, tanning room walls). The landlord will generally be more favorably disposed to those that will help him down the line. 3. Ask! At a minimum, would like them to waive the start of your rent until remedel is re-done (they'll want you to move quickly). Better yet, try to get them to let you have a few months after to "get on your feet". In your negotiating, hopefully you have also talked to them about how tanning is a "destination location" and the large number of clients you'll be bringing to the retail center that will help the other tenants as well (and make any empty spots the landlord has more attractive to rent to someone else in the future!).

01-03-2005, 12:01 AM	#10 (permalink)
SandiGirl OFFICIAL BFF member Join Date: Jan 2 2005 Location: BFFland Posts: 3,331 Rep Power: 36	Our landlord gave us 3 months free as well but he was also our designer and was there every day guiding us as we did the work ourselves. $850 is a good deal.

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