So I met a lady that owns a restaurant and she just opened it. She was originally going to open it up down town but decided to move it after she had already gotten it almost ready. It already has the floors done, lights, plumbing, gas lines and was already inspected. She also has a refridgerator unit, three compartment sink, cabinets and bathroom done. The only thing I would need is oven, tables, and my baking equipment. Sounds great but I dont know what is reasonable to pay for rent. She said it's a huge kitchen and it was bigger then the restaurant she already has and I saw that and it was big. She explained that she still wanted to have her freezers there and have some stuff in storage. She said that she would reduce the electric bill because of it. Also she would cut me a deal on rent since she is storing stuff there. I would be responsible for gas and water, and garbage I'm guessing. Sounds great. When rent comes up I dont know what is reasonable. I have never done this before. Do I get a lawyer to go over contracts. Pray for me that she offers me a reasonable rent and that this is a good location.I meet with her tomorrow! I'm so nervous and excited.
YEs, you get a lawyer to look it over!! It's not personal ... it's business.
You need to find out what the average cost per square foot for similar commercial property rent is in that area. There are a couple of ways to figure the rent but here's how we do it here:
$15/square foot x 1000 sq feet = $18,000 / 12 months = $1250/month rent.
The avg rent in my strip mall was $15/sq foot. We offered $10 and they took it, along with some other things that they covered.
what kind of things did they cover? garbage? water? what kind of things should I be asking to get out of this?
Like debi said get everything checked by a lawyer. As for what they might cover not sure but it sounds like she's going to be giving you a break on a couple of things already but it won't hurt to ask for more
Good luck tomorrow
We asked them to cover the cost of health dept approved flooring, to upgrade the electrical panel to accommodate my equipment and upgrade the A/C if needed. The rent for a sign on the pylon (the big sign at the entrance of the strip mall that has all the stores' signs on it) was $50 a month .... we offered $25 and they took it.
Ok I'm back. Here's the low down The location is in an ok area. It's not really alot of businesses around there and it is more of a developing area. It is a nice size area and has a big window in the front and an awning. I can put up a new one so it wil have my business name on it. She stated that it is an open lease. I can stay as long as I want but she wants to keep the building to pass down to her children and store her stuff there. I would just be renting the front part of the building. The plumbing is done, the three compartment sink is there and the hood for the stoves are there. All the gas lines are put in and cabinents. I would have to put in a new floor if I choose and paint if I choose. It's already painted though. I just want it pink. She said that she wants to build another wall to give me an area for storage and a room for my kids to be in to play. I would have to be lights,gas, phone, garbage, and water and security system and insurance. I would have full reign of what I change and put in? She wants $400 a month. How does that sound?
Wow... It all sounds pretty good to me. I'd LOVE to find a deal like that. Good Luck!!
I hope it all works out for you!!
Sounds like a great deal!!!
One thing that caught my eye in your original post is that she wants to keep stuff stored in the freezers....make sure you cover yourself from being responsible for anything happening to her stuff....if the power goes out, if one of the freezers stops working....etc. Also, is your security system going to cover her part of the building? Will she need access after hours when you're not there....etc.
Good luck and more importantly....have fun!!!
wow .... sounds like you got yourself a huge bargain! I would love to find something like that .... dang .. I am jealous ....
$400 a month/ I'd kill for thatdeal lol
make sure you get EVERYTHING in writing as to what you're rent is and what bills you are responsible for.
wow! good luck to you. i hope it goes through.
are you still going to have a lawyer check this out?
where in new york are you?
just in case im in the area i would love to take a peak at your new business! congrats to you!
** the cakerator- i LOVE your ticker!!!!
let us know what you decide!
Maybe I can live thru you. The strip center close to my home is $23/sf. Just that looks scary and thinking about everything else makes it spine trembling. I hope to open a shop one day. I guess when it's my time it will come.
Good luck and hope you make tons of tons of cake memories in your new place!!
wow! Makes me wish I was in the real estate business! That number would make me nervous too!
indideby - It so makes me think my dream will be impossible to achieve.
For a 1500 sq ft space, that's close to $3000 a month. My goodness, even in Texas, couldn't you buy a small house and convert it to a kitchen / retail shop for less than that? A $200,000 mortage at 7% for 25 years is less than $1500 a month (I just ran a mortgage calculator).
Just food for thought......
I don't have a place - just a hobby caker at this time, but I'd say $400 a month is a REALLY good deal, no matter WHERE you are!!!!! Wow, that's awesome! Definitely get everything in writing- maybe the two of you shold meet with a lawyer so he/she would draw up the contract. That way you both have a say, and it's a legal binding contract. Just something to think about. Very exciting stuff - you'll have to post pictures, and keep us posted! Very cool - CONGRATULATIONS!!!
$100 per week?!?!?!!?! Good Lordee!! I had no idea!! Cos see to me $100 per week is .........How does Someone do this WITH NO clientel as yet No real experience as yet & NO COMMERCIAL kitchen! I could NEVER afford the $60 a week that was quoted to me & I gasped at THAT?! I just had no idea!
Im not gonna feel low about this...I may have to keep researching & maybe veer this into something else. Im on a pension so how do I make this worK? RSL clubs? I need a kichen cheaper than $60 Cos this is our food $ every week Until I get jobs! How do ppl START a business????!
And if you start HOW do you keep CENTRELINK of your back from saying NO NO thats not an approved activity! Trying not to cry!
How do ppl START a business????!
Take solice in that it's not just us in the cake/food industry. Anyone who wants to start a biz .... any biz ..... has to deal with the same problems. The mechanic who wants to start his own garage has to spend thousands and thousands for lifts, hydraulics, special computers and computer analyzing equipment ('coz all cars are computerized these days ... the backyard mechanic is falling by the wayside); licensing; insurance; rent ... same as us.
The lady in the neighborhood who wants to open a "real" daycare center has to have so much square footage per child; so many hired helpers per 5 or per 10 children; beds, special "short" toilets for the kids; kitchen facilities; lots of toys and storage and cleaning; licensing requirements; insurance; rent ... same as us.
The person who wants to open the craft shop has to deal with insurance and rent, same as us; shelves and tables and racks and displays for the inventory; the cost of the inventory itself (which ain't cheap to stock a whole store!).
It's not just us ....
Indy is right on all of the above...She's our resident expert!
As far as the rent, good God...I wish we could even touch that...Most of the places here in central Florida are running 2200-4800 per month for 1,000 square feet. Then, on top of that, you have to pay the 6.5% sales tax. I still can't figure out how Florida justifies a sales tax on renting space.
Paul (& Peter)
I'm going to try to post a pic of what the place looks like. Now what do you guys think? I was thinking of using it as a place to bake? I'm so confused. Do you think I should just stay baking at home just so I can save money on the rent and all the utilities. I make around $600 a month so far but that's just doing cookies. Havent really gotten many cake orders. But I fiqured I can advertise more if I have a building because at home I cant advertise too much or do wedding cakes out of my home. I dont know what to do????? Ok so I added it to my photos bc I didnt know how to resize the photo.
Now that you all can see it should I take it or run real fast?
I can always see potential in things - and I love the idea of cleaning up places, putting my own stamp on it, and having it my way. ha! I can see the potential, but I guess I'd want to know what is in the area. Would you feel safe being there? It's definitely not the most glamorous space, but the price is right. What is your gut telling you?
A BIG question. LOCATION, LOCATION , LOCATION. Will this be for foot trafic or just a base for baking with delivery?
My true dream is to have a walk in bakery but I was thinking just to start I would use it at just a location to bake and deliver. I've heard that its not the safest neighborhood so that makes me kind of nervous. I think I may pass but I hope I'm not making a huge mistake.
I would do some reasearch on the area. I'd even talk to the local police and see what they say regarding the safety of the location? Who would know better what the crime rate is like?
And what would it take to bring the place up to code? Have you checked that out?
And if it's your dream, then pursue it! But at least with some good reasearch first you can make an educated decision.
Take sweetcakes advice, could not have put it better myself. Do the research and make an educated decision. If you walk away without doing that you will always wonder "What if?" If you jump in without researching you could be making a terrible and costly mistake. But in the end not much is accomplished without taking leaps of faith.
well it's already got all the metal on the windows and doors, so it would be tough to break in.
a couple of gallons of paint...and a nice sign would do wonders.
the shop that i rent is in the very best part of town....and it was broken into.....in a bakery, the only thing that a thief would want is any $$$$ in the cash register....everything else takes an act of congress to move....they got about 70 bucks outta the register.
the shop that i bought on the other hand, is not in the best location, i had to work with what i can afford.....i say go ahead, for that price you could afford to install some security stuff in there.
what does your heart tell you?
In what part of NY is this store located? $400 seems EXTREMELY cheap for NY....If you are serious about a store-front bakery, this may be a good opportunity to get things started...good luck!
best of luck to you....