Lease negotiations?

whit1 · 07-28-2006, 09:45 AM

the space im looking at is 1200 sq ft, $15 a sq ft, with Triple net lease..

any suggestions on negotiations here?

i was thinking of asking for a $10-12 sq ft lease for 2 yrs then another 3 yrs at $15..the first 2yrs lower cause this is a new business and need to get it growing..this this would be reasonable to offer. ? what would u also recommend on neg. for the 1st months rent as this would be my build out month?

all suggestion would be great...

thanks
whit

billable · 07-28-2006, 09:51 AM

The only thing that anyone can recommend that will make sense is to know your market. Lease, like everything else in business, is supply and demand.

If you are in a strip mall that has 3 empty bays, negotiate for a better deal. If you are in a center that is full and people are lined up behind you to get the spot, not a lot of use in negotiating. Either take it or pass, depending on how it fits your budget and your overall business plan.

Sorry I can't offer more specific info.

TomorrowSun · 07-28-2006, 09:58 AM

Quote:

what would u also recommend on neg. for the 1st months rent as this would be my build out month?

I would ask for 6 months free rent to allow for your buildout. Most landlords will offer 2 months, but that is still pushing it to get everthing done properly in time. Also as for an allowance. Or ask if they have one. I have seen a lot of places offer $10-15 per sq ft for an allowance. That is huge if you can get that.

I have got a spot (1340 sq ft) and done the whole buildout in 3 weeks, but I lost 15 pounds and worked my a$$ off. I had to cut a few corners to get it done. I have to go back now and fix some drywall mistakes and finish putting up the crown molding.

whit1 · 07-28-2006, 02:48 PM

Quote:

Originally Posted by TomorrowSun

I would ask for 6 months free rent to allow for your buildout. Most landlords will offer 2 months, but that is still pushing it to get everthing done properly in time. Also as for an allowance. Or ask if they have one. I have seen a lot of places offer $10-15 per sq ft for an allowance. That is huge if you can get that.

I have got a spot (1340 sq ft) and done the whole buildout in 3 weeks, but I lost 15 pounds and worked my a$$ off. I had to cut a few corners to get it done. I have to go back now and fix some drywall mistakes and finish putting up the crown molding.

what do u mean by an allowance?? not familiar with it.??

the build out im sure i can do in 2 months with my father in law, he builds houses for a living

billable · 07-28-2006, 02:54 PM

Anything that you do in the buildout is going to belong to the landlord when you leave. See if they will help with some of the expense

MJ · 07-28-2006, 03:01 PM

you should negotiate the hold over fees, management fees-- if applicable, CAM caps, and frankly a flat rate lease is far better for you than a graduating lease. JMHO

whit1 · 07-28-2006, 03:03 PM

Quote:

Originally Posted by billable

Anything that you do in the buildout is going to belong to the landlord when you leave. See if they will help with some of the expense

do u mean ask the landlord to pay for the build out of lets say..tile floor and rooms bring built for beds ? so lets say the build out of materials cost $5k, should i be negotiating that with the landlord or a portion of that?

whit1 · 07-28-2006, 03:05 PM

Quote:

Originally Posted by MJ

you should negotiate the hold over fees, management fees-- if applicable, CAM caps, and frankly a flat rate lease is far better for you than a graduating lease. JMHO

bare with me im new to this....

what are hold over fees, mgmnt fees, etc ?

also since he is asking $15 sq ft, try and negotiate for $12? is that reasonable or should i try lower?

MJ · 07-28-2006, 03:08 PM

Unless you have a sweeett lease capped cams, no management fees low hold over fees and renewl option negotiated that 5k build out they might throw in will end up costing you 15k + by the end of your lease.

It's like this--- someguy will give you a 25.00 bucks a day for 2 years or give you 1000 bucks right now..
which one would you choose?

billable · 07-28-2006, 03:11 PM

Try these sites to learn about lease terminology

http://www.firstmartin.com/define.html

http://international.syr.edu/knowled...seglossary.htm

http://www.cityfeet.com/Tools/Glossa...px?PartnerPath=&

07-28-2006, 09:45 AM	#1 (permalink)
whit1 Join Date: Jun 29 2006 Location: Ma Posts: 37 Rep Power: 0	Lease negotiations? the space im looking at is 1200 sq ft, $15 a sq ft, with Triple net lease.. any suggestions on negotiations here? i was thinking of asking for a $10-12 sq ft lease for 2 yrs then another 3 yrs at $15..the first 2yrs lower cause this is a new business and need to get it growing..this this would be reasonable to offer. ? what would u also recommend on neg. for the 1st months rent as this would be my build out month? all suggestion would be great... thanks whit

07-28-2006, 09:51 AM	#2 (permalink)
billable I'm Banned Join Date: Feb 1 2006 Location: Tennessee Age: 47 Posts: 4,181 Rep Power: 0	Re: Lease negotiations? The only thing that anyone can recommend that will make sense is to know your market. Lease, like everything else in business, is supply and demand. If you are in a strip mall that has 3 empty bays, negotiate for a better deal. If you are in a center that is full and people are lined up behind you to get the spot, not a lot of use in negotiating. Either take it or pass, depending on how it fits your budget and your overall business plan. Sorry I can't offer more specific info.

07-28-2006, 02:54 PM	#5 (permalink)
billable I'm Banned Join Date: Feb 1 2006 Location: Tennessee Age: 47 Posts: 4,181 Rep Power: 0	Re: Lease negotiations? Anything that you do in the buildout is going to belong to the landlord when you leave. See if they will help with some of the expense

07-28-2006, 03:01 PM	#6 (permalink)
MJ Join Date: Jan 21 2002 Posts: 3,060 Rep Power: 8	Re: Lease negotiations? you should negotiate the hold over fees, management fees-- if applicable, CAM caps, and frankly a flat rate lease is far better for you than a graduating lease. JMHO __________________ [IMG]Avatar locations copied, will not show up as pics.[/IMG] Banned "forever" twice ~ yet I can still post here...:lol:

07-28-2006, 03:08 PM	#9 (permalink)
MJ Join Date: Jan 21 2002 Posts: 3,060 Rep Power: 8	Re: Lease negotiations? Unless you have a sweeett lease capped cams, no management fees low hold over fees and renewl option negotiated that 5k build out they might throw in will end up costing you 15k + by the end of your lease. It's like this--- someguy will give you a 25.00 bucks a day for 2 years or give you 1000 bucks right now.. which one would you choose? __________________ [IMG]Avatar locations copied, will not show up as pics.[/IMG] Banned "forever" twice ~ yet I can still post here...:lol:

07-28-2006, 03:11 PM	#10 (permalink)
billable I'm Banned Join Date: Feb 1 2006 Location: Tennessee Age: 47 Posts: 4,181 Rep Power: 0	Re: Lease negotiations? Try these sites to learn about lease terminology http://www.firstmartin.com/define.html http://international.syr.edu/knowled...seglossary.htm http://www.cityfeet.com/Tools/Glossa...px?PartnerPath=&

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