MJ

start at 10 bucks--he will meet you half way if they want to fill the space.
Hold over fees and the other questions I am sure I have answered many threads concerning these topics. Explaining each term and how to negoatiate them to your liking.

Use search function -key word hold over fees..etc

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billable

Again, how you negotiate a lease (or anything else in business) depends on your unique, individual situation. If it is in a separate building, what are other people doing in similar situations in your area. If it is in a strip mall, what are the other tenants paying? What did they get for allowance, holdover, etc.?

If your landlord has other people wanting the space, he is not going to want to negotiate. If you are the only prospect on a bay that has been empty for 6 months, negotiate every aspect of the lease. There is no magic formula to know what to ask for. Everything is negotiable under the right circumstances.

Hope this helps.

MJ

You have a point ....however I personally would not rent full or not without negotiating these factors. Especially with the high cost of doing business these days.
If you have excellent credit and a business sense-- most landlords --looking or long term tenants --will choose you over some schmoe that he will have to chase down to collect payments from in a year and a half.

JMHO

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billable

Look at your business plan. Stay within your budget. If the lease doesn't fit in your budget, walk away and keep looking.

sunsally

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.

Steve Underhill

There are many ways of negotiating a lease. What you can get is determined by the space being new or old, if it is one of few spaces available and so on. Ask for a lot of different things, free rent, TI allowances, additional AC & electrical, rent variances at different times during the lease term. There are lots of ways to get more than is being offered.

sgoodin

I agree with sunsally it takes a lot longer than you think once you have to work with architects, the city, etc. to get all the permits needed.


I negotiated the following:

90 day build out or first day of business
Owner added 200 amp to the existing 200 giving me a total of 400 amp
Owner added 4 tons of A/C to the existing 4 tons giving me a total of 8 tons
Plus a TI allowance of 18.00 per square foot (giving me $28,800 for the build out)



TI allowance here in AZ is anywhere from $5 - $20 per square foot depending on if the building is a “grey” or “vanilla” shell.

whit1

i just talked with a lady who leased a spot from the same guy and company im gonna lease from and he was asking $20 sq ft , she got him down to $15 plus $2k for tile for the floor and had them paint her walls...

im gonna shot for $10 a sq ft since there asking $15, ask them to tile the floor. 4 month no rent build out. i think the Ac on the bldg is a 5 ton is that sufficient for 1200 sq ft ???

-Whit

West Side Tanner

No.

TomorrowSun

On average, you need 1 ton per 400 sq ft of space. 5 tons of AC is just enough for the space and maybe 1 or 2 base beds, then you have to add more for your other tanning units.

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