Build Out Of A New Club

[davhas]

I was thinking of leasing a building which once was a retail store. They agreeded to allow to use as a restaurant and lounge. I was woundering what should I get the landlord/owner to pay for the build out to facilitate the change. ie pluming, build in refrig/freezers, bathrooms, oven vents or anything at all.

Thanks

Dav Has

[speedyflyers]

you can always try to negotiate a bulid to suit lease - basically you will lease the building for 5 years or more and in return the owner of the building agrees to make and pay for any needed improvements..

[Oxrock]

this can be the make it or break it negotiation of your new business life.

as i am currently in heated negotiations to secure a porperty for my next project and having been put through the nut crusher many times in the past, regradless of how great the location and general building particulars as they apply to your concept/operation be prepared to pass the open window.

ok so the property owner gave you the thumbs up for a restaurant/bar. whats that mean? not much really since most of these folks just want the rent and dont care if you opened an expresso bar for cats and dogs.

if there is going to be booze served then the landlords approval is a minor nod from one fan in the stands. now only the city, citizens and "others" stand in your way. be ready to take one for the team.

build-out negotiations: so you approach the owner with your crack team and begin deal or no deal . after a month or so as your taking a drive past the home of your future uber bar & brauts bistro you see the grand opening sign for miss kittys capuchino & cat nip boutique.

this is a risky business and imo from my own experience this landlord is in no way going to absord any of the cost for your build-out. now if your landlord is donald trump and wanted to attract the hard rock cafe to set up house in his lobby then thats another story. a happy one!

bring somes pros into the building and size up the space and see whats going to be needed. sure im keeping my remarks simple in this never simple situation as well to keep from getting writers cramp in my meat beaters. the building might not be easy to convert depending on numerous factors that to you may not seem very obvious. that is of course you can get an occupancy permit and license to turn this former retail store into a resto-bar.

fyi- the average start-up cost in the u.s. for a coffee house gets going at about 70k. what the hell is involved in one of those?

again i dont have any info on your situation other than your post so i will end with this. be prepared for a long negotiation and even though you and i know that your going to bring added value to this persons property ( and headaches ) that property owners, especially these days, care less and want more. there are conditions that are general in many of these dealings such as the grace period ( no rent for x months of build-out ) and they are more with pro-rating the rent and possibly off setting the massive guarantee ( deposit methods ) required for commerical real estate.


consult with a professional realtor that deals in commercial property and also a real estate attorney. aside from that have a solid estimate of the projected cost for the things you "need" to do to make the property legally inline for the intended function. baby steps my friend!

pull all strings and call in all favors and always , always keep all options open.


all the best

m

post removal 15 hrs

I've nothing to add except the bold. As always a great reply with a side of humor. :D

[teenclub]

you are always ahead anytime you can get a landlord to PAY for improvements.

Usually you can get 1 or 2 months free easily (i always try for 4)

[ministry]

i love va beach

[davhas]

WOW! I invest 100-200K in a build out of another persons building and get about 15K of rent free and when I leave or the landlord decides not to renew my least he keeps everything! WOW!

DAVHAS

[teenclub]

don't know where you are but in addition to that

we get to:

pay his mortgage
pay his property taxes
Pay for costs of improvement of property
pay for his property insurance
put a little money in his pocket


of course one day when I own a few strip centers, people will do that for me :)

[Oxrock]

I've nothing to add except the bold. As always a great reply with a side of humor. :D

Got it! :)

So much for self destructing posts!
:D

[LavaRock]

I was thinking of leasing a building which once was a retail store. They agreeded to allow to use as a restaurant and lounge. I was woundering what should I get the landlord/owner to pay for the build out to facilitate the change. ie pluming, build in refrig/freezers, bathrooms, oven vents or anything at all.

Thanks

Dav Has
most definitely.....anytime you can neogitate any tenant build out allowance and free rent during your build out phase youre ahead in the ballgame.....it is all about negotiations.....commercial leases are a totally different animal.
aloha,
lava rock

[excellentbars]

Originally Posted by davhas
I was thinking of leasing a building which once was a retail store. They agreeded to allow to use as a restaurant and lounge. I was woundering what should I get the landlord/owner to pay for the build out to facilitate the change. ie pluming, build in refrig/freezers, bathrooms, oven vents or anything at all.

Thanks

Dav Has

Dav Has

A project like this is the most expensive way to open a new bar..I dont recommend this as Landlords are not into putting $150,000 into the building for you to open a business.
This is what it will take for you to get the items listed above installed
1-Kitchen
2-Bathrooms
3-Bars

I opened one of my bars in Nashville TN and had a &#@^!*OLE for a landlord and a partner...who kept telling me about the good ole boy network he and the landlord had.....We got "$0" TI's from the landlord....and paid full market price for the lease OUCH! $30 sqr....The lesson is that Landlords are not your friends! They want to make money just like you......

I would recommend that you wait to find a venue such as a restaurant or bar that has shut down and take it over, or look for a venue that someone wants to get out of and you can do a remodel to....

I have added a new location rating system you should take a look at it and rate your venue...

Cheers