Lease for new space

[ERIC]

There is a new location that has my eye and I will be talking to the developer this week about leasing a space.

Since I bought the shop in it's current location and assumed the old lease, I have never expirenced negotiating a commercial lease.

What can I expect the landlord to ask?
What will I likely be required to tell them about my business?

I have done a search and found great info on pricing pf, sales pf, and other topics. But there is some anxiety about the meeting!!

[Tim Hayes.]

Not knowing the particulars of the situation. I have gone through the process myself just recently. I used a commercial real estate broker to negotiate on my behalf. He worked for me but his fee is paid by the landlord/developer. This is a standard practice. I also hired a lawyer to read the lease, make suggestions and work on my behalf to negotiate a better deal for me. Will you be moving or will this be a second location. What interior buildout will be necessary? Will you require financing for the new space? Is it new construction?
All things to think about.
Good Luck,
Tim Hayes

[ERIC]

Thanks Tim, it was the thread about your lease that gave some great info.

It will be a move. About 12 blocks away.

It is a rehab of an old building. There will be six units - 3 retail and 3 food.

It is a 'plain vanilla' space with a bare concrete floor. All the walls and ceilings are brand new. It is not ready yet, he hopes to have a Cert. of Occupancy in Nov. or Dec.

There is 900 sq ft on the main floor and 900 sq ft of basement. (?? how I establish a value per sq ft on the two different spaces??)

The broker idea is one I had not thought of - I figured if I already found the space, how do they help?

[Cliff Wilson]

I wish I could give you some advice. My experience says EVERY situation is different.

I negotiated one lease through a broker representing a large non-resident corporate owner. The key was to tell him as little as possible and keep whining about the cost etc. etc. -- took time, but I wound up with a better deal than the rest of the plaza.

Another time I was dealing with a "good ole boy" owner. The key was to tell him everything. Make him my buddy. Dig into the neighborhood and find "stuff" like ... "my grandfather delivered milk to your father's restaurant." I had to become a good ole boy. I was standing next to him when he "almost literally" through out a broker for a national chain (you'd all know the name) because the broker said he (my landlord) would have to pay his fee. NO WAY was he dealing with anybody too "business like." I had to offer to have my lawyer draw up the lease. He was just going to "take a check next week."

I would go in trying to meet and become well acquainted with the owner. Minimizes a lot of hazzle. If you find the "owner" is absent or a company, then look to a broker or lawyer to help you out.

Of course a "silent" advisor can be useful.

Cliff

[Cliff Wilson]

Oh, a couple of other things ... (I guess I am going to give you advice :D )

1) EVERYTHING is negotiable!
2) Anything not prohibited is permitted.

[joe]

Eric I rent space in a small old five and dime which is chopped into smaller units. I would find out, if possible, who the other retailers are(if any as yet).
Also find out if the owner/property manager has any plans to advertise the location and what $ amount or percentage will he take out. My owner doesn't do this and I wish he would. Will there be mandatory hours that you and the others must be open?

[Framing Goddess]

I am going to second Cliff's comment: Everything Is Negotiable!

Also get yourself a good real estate attorney. Not a friend of the family who handles divorces.. just a good real esteate attorney. Ask other small business owners if they know of anyone they might recommend. My last space came with a lease 28 pages long and the attorney I hired recommended lots of revisions that made a BIG difference.

You are not required to tell them anything about your business.

Did I mention that Everything Is Negotiable?

edie the itneverhurtstoask goddess

[wpfay]

Shouldn't all disclosure be asked for in writing?

I have found that what goes on in the verbal negociation is not necessarily what is put down on the lease.

Getting a legal representative will assure you the only the information that the lessor needs to have is divulged. They will also help you ask the right questions for your interests.

12 blocks...it would be easier if it were cross country.

Good Luck.