Lease - What To Ask For?

Business By Jenn2179 Updated 12 Jul 2010 , 4:14am by Jenn2179

Jenn2179 Posted 12 Jul 2010 , 1:54am
post #1 of 7

So I have a post http://cakecentral.com/modules.php?name=Forums&file=viewtopic&t=687009&postdays=0&postorder=asc&&start=0 about an amazing opportunity I have been offered. The owner of the building told me to write up an outline of what I expect. He isn't too concerned. He doesn't like having an empty space and he wants it filled. I think it is also important to him to be able to help small businesses in the area and he wants this to work for the both of us. I know that I will need to get some plumbing work done to put in the sink but there is already a bathroom so the plumbing is there. I also will need some 220 plugs put in but my brother is an electrician and his company is licensed in NC and he can do the electrical work for me. I already talked to the DOA and the requirements are the same for a commercial bakery as a home bakery so I know what is required there. I will also need to do something to the concrete floor to make it cleanable (is that a word) and will need to paint the walls. That is really all the build out that needs to be done. My questions is what should I ask for? He seems really easy going and wants to help me and my business. He offered the space to me rent free for a fre months and then to slowly raise the rent as my business grew to the amount that we both agreed on. So my real question is what should I ask for in my outline?

6 replies
Motta Posted 12 Jul 2010 , 2:09am
post #2 of 7

It sounds like a wonderful opportunity. Congrats!

I know you trust this man but it wouldn't hurt to talk to a lawyer and get some legal advice. You will have to sign a commercial lease and it's a contract so you should know exactly what you are signing. If the landlord is going to make it so attractive for you, make sure it's all in writing so that you are protected. A lawyer can also advise you on what to include in your outline even if you don't hire the lawyer to represent you all the way to signing the lease. I know there will be an expense for legal advice but you're saving all the money on electrical, etc.

Hope all goes well for you!

Jenn2179 Posted 12 Jul 2010 , 2:15am
post #3 of 7
Quote:
Originally Posted by Motta

It sounds like a wonderful opportunity. Congrats!

I know you trust this man but it wouldn't hurt to talk to a lawyer and get some legal advice. You will have to sign a commercial lease and it's a contract so you should know exactly what you are signing. If the landlord is going to make it so attractive for you, make sure it's all in writing so that you are protected. A lawyer can also advise you on what to include in your outline even if you don't hire the lawyer to represent you all the way to signing the lease. I know there will be an expense for legal advice but you're saving all the money on electrical, etc.

Hope all goes well for you!




I will get it all in writing. Luckily my best friend's husband is a lawyer and is licensed in NC and can take care of that for me. I am just trying to figure out what to ask for in my outline to give to him and then we can get the lease based on that.

indydebi Posted 12 Jul 2010 , 2:41am
post #4 of 7

Are there any 'common area' charges? These are fees charged by the landlord over and above the rent to cover parking lot lighting, snow removal, property taxes, gen'l maintenance, upkeep and repair. These are also negotiable.

Who is responsible for A/C & heating units? For water heaters? In many leases, this falls on the tenant's shoulders and an A/C repair can cost $10,000 to $20,000 or more. I wasn't in my shop 30 days when the bathroom water heater needed replaced and it was my responsibility. (Pissed me off, too!)

Free rent for a "few" months .... how many is a "few"? Around here, gettign 3 free months is pretty standard. Ask for 6 and ask that the clock start when building permits are ISSUED. There's a LOT of preliminary legwork to do before the work can start, and with a relative in the electrician business, I'm sure he can attest to this.

I asked my landlord to cover the cost of the special health-dept approved flooring (they did) and for them to cover the cost to increase the electrical to 400 amps for all of my equiopment. They agreed to this to a limit of $7500. Work out in advance how this is handled. I thought the landlord would issue a check for $7500 to the contractor. Nope! I had to pay the whole dang thing myself, show them a paid recipt and THEN they reimbursed me. That really hurt my cashflow for a short time.

Don't be afraid to offer a lower rent. My place originally wanted around $13-$14 a sq foot. I offered $10. We compromise at $11. That $2-$3 negotiation saved me $200-$300 a month in rent.

Jenn2179 Posted 12 Jul 2010 , 3:33am
post #5 of 7

Thanks for the input Debi, you are awesome!

SweetsDecor Posted 12 Jul 2010 , 3:48am
post #6 of 7

Not sure what type of area this place is in, but might want to ask for a non-compete clause in the agreement so that you don't wind up with another baker in the same complex.

Jenn2179 Posted 12 Jul 2010 , 4:14am
post #7 of 7
Quote:
Originally Posted by SweetsDecor

Not sure what type of area this place is in, but might want to ask for a non-compete clause in the agreementreo so threat you don't wind up with another baker in the same complex.




Great idea. There are 5 spaces, Chinese place, pizza place, tax place, and dry cleaners.

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