build out

I am currently in negotiations for 1500sqft space for a pizzeria…how would I get an estimate on what a build-out will cost?..Thank You…Jimmy

You get an architect who will draw up plans for you. Then get bids by contractors. It all depends on what you plan to do and the costs of materials and labor in your area.

Just as an idea. what would average cost be minus equipment in Orlando 32819 on 1500 sqft. is there a formula?

I was recently looking into relocating to a brand new building and contractors I spoke to were telling me to expect to spend anywhere from $60-$100 per foot. This was from a dirt floor and block walls, so would include all electrical, plumbing, pouring slab, framing, HVAC, ceiling grid, building counters, flooring, finish walls, ect ect.
Of this, the landlord was willing to pay $30 per foot towards the buildout. Hope this helps.

We are looking at costs from $40 to $60 for 1750 sf with landlord reimbursing $25.

we just finished up our brand new pizzeria and just opened the doors last week. when we first took the keys, it was just 4 walls, no plumbing, no electrical… nothing. Our total cost was about a quarter mil, and about a a hundred fifty of it was the build out that included all new hvac (2 brand new econimizers ac units, 2 hoods with roofwork, make up air unit). trust me, do it right the first time. dont skimp if you know it could bite you in the rear one day.

How big is the place???

How much will it cost? — More than you think.
How long will take? — Longer than they said.

Seriously, If you have not done this before (negotiated a lease and/or managed a build-out) get some advice.

Market conditions vary quite a bit. In most places right now though, good tenants are rarer than good locations. In those conditions, the landlord should be covering AT LEAST the cost to bring the space up to basic commercial utility. That means the cost of floors, electical, plumbing, ceiling, lights etc should come from the LL. I would suggest that you seek to have the work to be done by the LL defined rather than the $$s to be contibuted. That way, cost overuns on that work go to the LL. If you accept an allowance for those things overruns are your responsibility.

In today’s environment (again, most places, not all) the LL may be willing to give you an allowance ABOVE AND BEYOND the basic build out.

You should not pay rent until you can open for business and you should not be subject to delays in areas you do not control.

if you are in a good cash position, be flexible about how the LL contributes to these things. There are several ways to do it:

  1. LL writes a check
  2. LL provides a rent holiday as an offset
  3. LL offers reduced rent (below market rate) to offset.

There a number of other money buckets in a lease. Be sure you are paying attention. Hire an attorney.

Last thought: a location that is already a restaurant will be a LOT cheaper to convert.

We just got our final funding piece in place. We went back to the leasing agent for the landlord to tell him we were ready to negotiate. He said “Make me an offer.”

Okaaaayyyyy…

What the heck does that mean? They originally quoted like $24 sf rent and $20sf build out. Then the credit crunch hit. We were in a booming area and it appears to have slowed down considerably. We are just not sure if he is desperate or nonchalant.

I looked up the court records for the owner of the place (who has developed and sold several properties over the last 15 years or so in this area). He has a $711K note on the building and as of October 4, he modified the note with the lender to be interest only at prime. So his interest payments on the property are about $36K a year. The property is three spots of 1750 sf each or 5250 sf total. At his asking price of $24 sf NNN, he would make $126000 and net about $90K. Not bad. Of course, he probably has a down payment in there of 20 percent so his cost of money would also need to be considered.

He only has one spot leased at this point. Most property in the area went from $20 to $25 sf before the crunch. We are trying to contact sources to see if deals are falling apart or being delayed.

  1. What do you make of his leasing agent?
  2. What do you make of the market now on changing his position?
  3. Why would someone change to an interest only loan?
  4. Should I answer his question with “Okay. How about $15 a sf and $25 for buildout? No? Make me a counter offer?” Any chance he would actually refuse to lease to us for any amount if I did?

1150 sq ft