Lease Agreements?

[djelwood]

To any club owner out there - I am on the verge of signing a lease agreement in the FL area, what pros or cons should I watch out for with landlords?

[Ruben]

To any club owner out there - I am on the verge of signing a lease agreement in the FL area, what pros or cons should I watch out for with landlords?


Read up on excellentbars leasing post he posted. Use the search to find it or buy his book, it states a lot of information regarding leases for new bars/clubs.

[ministry]

god i hope you are using a attorney ! have a out clause so if you get denied for any permit you can get out of the lease.

[excellentbars]

Hey DJ

Here are a few things to look out for....

-PG or Personal Guarentee I would Perfer not to sign on but if you have to only sign it for 1 year....this is all that you should need...Some landlords want more but I would max out at 2 years if you are well funded...
-TI's You need to get Tenent Improvement Dollars or Free rent in exchange for you improvements to the building...
-Building maintinance such as the roof and HVAC needs to be the responcibility of the landlord
-NNN or triple net you need to make sure he land lord is not double dippin and getting you twice...sometimes the landlord will make you carry full coverage for the building and then charge you agian in the NNN
-Increases in Lease Rate...The standard is 3% but I like the option of a 12% increase at year 5
-Sub Lease I would always like this option in my lease's as most landlords dont like this...But if you get a lazy landlord he should be fine...
-Sale and Transfer of lease need to be in FOR SURE! this allows you to sell the business... A MUST! sometimes the landlord must requalify the new tenant but this is OK!
-Options to extend the lease must always be the Tenants!
-Free Rent during buildout is a must I like to get up to 6 months...with the rent starting at the date of opening..so that could be 3 months but it is fair and safe to have in the lease..


There are a few items

Cheers
Chris

[layla17]

Great information excellentbars. That will be most helpful for me when I try to secure a prime location for lease. I was unaware of that landlords would consider free rent during buildout time.

[intensity]

Great information excellentbars. That will be most helpful for me when I try to secure a prime location for lease. I was unaware of that landlords would consider free rent during buildout time.


Me neither, this is unheard of.

[excellentbars]

Me neither, this is unheard of.

Intensity

This is industry standard to not pay rent during part of or most of construction if you are paying rent during the build out I would recommend to you too negotiate better......
On the last 5 Projects I have done from Vegas, Chicago, Oregon, Nashville I have had free rent during the construction phase...Not often as long as I would like but enough to get the job done!

Cheers
Chris