Okay…Just talked to the landlord and it comes as is where is with all the equipment. 1600sf. 15.50sf/yr with 2.75 NNN. So around 2400 or so a month. Of course I haven’t had the equipment inspected yet or anything. What department would I contact first as far as fire and health dept. etc.?
Contact a code enforcer first to see what, if any, changes will needed to be made to the space that you are interested in leasing. Even though it was already a pizza shop, they still might require you to make changes. Often codes are changed and new ones are added each year, and preexisting business don’t have to make those changes because they are grandfathered in. They might require you to get an electrical inspection and plumbing inspection. Every town and city is different. Some are more strict and difficult than others. You might be able to just move in and open up for business with no problems at all, but it is very important to check with a code enforcer first.
Shoot for something around 1600 or less with 5yr + options.
pizza2007 and printjerks…Thanks. I was thinking that’s a little high. Great location; however, if it buries me then what’s the use. I was thinking about opting for 3-6 months free rent. I’m not totally sold on the idea that I’m even READY to make this leap which gives me a very strong position as far as negotiating power goes.
I just signed a renewal for $15.33/sq ft., which I find to be “reasonable” in my market. So, $15.50 may not be out of line depending upon the locale. However, remember that “everything is negotiable.” If you’re really dead set on opening a store at this location, make a counter offer that is several dollars less per square foot in the 1st year or two and slowly builds up to what the landlord is asking much later in the lease.
Also: I know most of the posters on here love long-term leases, but ask yourself what happens if you enter into a 5-year lease and your business dies an untimely death after a year or two. I just closed a location in June that we signed up for 5 years instead of another place with much lower rent plus percentage rent on a 3-year deal. I would have never paid a dime in percentage rent, saved myself a pile in build out, and been out of there 2 years sooner if I had “accounted for failure and dealt with success” instead of the other way around.
I hope you are successful, but please think about “what happens if this doesn’t work?”
You can’t get anything good for less than $35.00 a square foot in California even with half the real sitting empty.
I am now calling that an “exit strategy” when I talk to people looking at starting businesses. Gotta have one to minimize collateral damage.
EXCELLENT REMINDER NICK!!!