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I have a Glitch. I have a lease question

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Warren

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I have been in negotiations on a location. I was going to have a freestanding building built in a the parking lot of a strip mall. It WAS going to be a great deal 1350 sq ft for $2000 a month. I will be delivery and carryout. Owner is a builder by profession and was going to get a construction loan and use his sweat /land equity for the 25% down with the bank getting him into it with zero out of pocket. The city has decided if he builds in the parking lot he has to bring the whole lot up to the new code. Planters Green spaces etc. that and a few other kinks more than doubled the cost so now he cant build it . He has a spot in the strip mall coming open in 4-5 months. after he remodels 7,000 sq ft of unused space a tenant is moving. I could probably get him to remodel me a space in that section as well. but its on the end with almost zero visibility from the street. Why the current tenant would move there is beyond me.
He has offered me that tenants old space 1200 square feet for $900 a month with no NNN charges. but he wants me to make my own improvements.
I have a friend who is a licensed electrician. I can get the electrical done for 1500-2000 I think Plumbing will cost me 2000-3500 Again I have a friend who is a plumber. So I can hire someone to cut the concrete etc. all said I’m looking at 20,000-25,000 to have the place ready to open. I have access to that much on credit. as I don’t want to burn through my cash on hand. I want to have at least 20,000 in the bank when I open.
I am going to ask him for some free rent to offset some of the costs . Typically he will have a space open for 6 months and still have do do some remodel. Am I crazy to ask for 6 months free rent. and 6 months at $450 a month ? Does that seem like to much to ask for? any other thoughts from your lease negotiating experience would be great. I have all the equipment I need except for a grease trap, 3 compartment sink and a prep sink. 30 K in cash and 40k I can get in credit. Am I being unreasonable with this? Oh yeah and one more question I have 5,000 budgeted to put the fan on the roof for the oven hood. and put a swamp cooler in as well for make up air. i don’t need a fire suppression system. Any thoughts on that cost?
 
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6 months free rent is pretty standard. Sometimes they will want the free months down the road though. I just did a lease where they gave me 6 months but it was 3 months at the start and then I pay rent 11 months out of the year for 3 years.

It must be nice up there. The paperwork ( plans and permits ) cost as much your budget down here in California.

Also make sure the landlord is willing to take care of any outside (parking lot )ADA requirements. And make sure the bathrooms meet ADA requirements. If they don’t it will cost a ton of money to bring them up to code. The engineer I use is ADA certified. When we are looking at a new spot he comes and measures the bathrooms. If they are not easily brought up to code we walk.
 
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Thanks, the bathroom is only for employee use no public bathroom needed for carry out. The only ada issue i will have is the ADA counter at the front. Its not like California here. You cant buy a 2 bedroom house with a garage, large fenced yard in a neighborhood with almost no crime for 120k in most of Cali either
 
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Still double check on that bathroom. I though the same thing. We just built a warehouse that has no customers at all and we had to increase the size of the bathroom by 4 inches to meet code. It was not a big deal and didn’t add much to the cost of the project. But each situation is different. Sometimes a wall can’t be moved and you have to apply for a hardship. The hardship may or may not be approved and by then you will already be far into the project and can’t go back.
 
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Hi Warren.

We never use a make up air unit ii a pizza shop of your size.

We use a compensating hood that brings in a substantial amount of the required make up air directly into the hood. it never enters the room. The balance of the makeup air is provided by the A/C which is going to bring in fresh air, even if you do not use it as part of your Make up air.

I would also note that we are finding building department in most jurisdictions are requiring customer restrooms in pizza carry out shops.

George Mills
 
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Thanks George i am lucky here i am not requiered to have a public restroom. For carryout. As far as make up air the swamp cooler was also for additional ac. Its very dry here and we typicly see a 20 degree temp drop from swamp coolers.
 
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jokergerm said:
2k for electrical to build pizz shop???
Click to expand...
All i need is two 220 outlets one for mixer and one for walk in two 20 amp 110 outlets. And a couple 110 outlets for makeline etc if there arent ones in place. And a 110 or 220 for oven hood fan. Thats maybe $500 in materials. And $250 for permits. If I had to pay market rate im shire I would get hosed for 6k to 8k but my friend is a licenced electrician he will do it for materials and a couple hundred a day labor. Its actually VERY easy to do. 90% is running wires. Takes only about 15 min per circuit to actually pop the breakers in the panel and hook em up. Legally with a 5 year lease I can do it myself with no electrician as long as it passes inspection.
 
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is that legal deal with a 5 year lease a WA state thing? I’ve never heard of that?? i know how to do everything but Im not an electrican

you have anywhere i can read more about this?
 
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Thats what the state inspector told me. It only applies to certain things not all. Example i will ron the wires have my friend check the connection then pop in the breaker and do the stuff inside tje panel.
 
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