Question For Those Leasing Commercial Space

Business By Mellie25 Updated 30 Mar 2011 , 10:30pm by MimiFix

Mellie25 Posted 29 Mar 2011 , 9:49pm
post #1 of 5

I'm beginning to look at commercial spaces to open a store front. I'm not having any luck finding a space in my area that is even close to equiped for what I need. So, how much should I expect the owner of the building to do as far as plumbing, electrical and building walls and basic counter space? Is it better to take out a loan or have the owner do it and pay an extra $200/month in rent? Also, what is reasonable for the amount one would spend on major appliances (not including ventahood)?

Thanks

4 replies
pamcakesandcompany Posted 29 Mar 2011 , 10:23pm
post #2 of 5

Hi
I am going to be doing the same
if you have any ideas please share
I was thinking to do all the baking in house ( my Kitchen )
and just do the icing and putting togerther at the shop.
What area are you in??
The Best,
Pam

itsacake Posted 30 Mar 2011 , 5:26pm
post #3 of 5

When I was looking to lease space, the deal was that I would lease the space and do ALL of the build-out. The one place that would have done the build-out for me was then going to charge me enough to pay it all back. $200.00/month was not even close!

I ended up buying a place and doing the build-out. At least I own it. I now share the space with 2 other bakers who pay by the month to use it with me. If you can swing it, look into that. Paying a ton of money for a build-out that the landlord owns is not my idea of a good time.

Also, pamcakes, not sure what you mean about baking in house and decorating in the shop. Is that allowed where you live? Most places it is not. Besides, the best part of having kitchen space is getting the whole business out of the house so you get the kitchen table back for dinner. LOL

My build out (including equipment and baking pans etc.) was about $125,000.00. YMMV.

indydebi Posted 30 Mar 2011 , 6:15pm
post #4 of 5

Buildout is normally the responsibility of the tenant. Comm'l space leased is usually referred to as "an empty box" or a "shell" and the tenant customizes it to however they need. It is rare and unusual for the owner/landlord to do any of the build out.

that said, you do have negotiation available to you at lease signing time. I negotiated tht the landlord would pay to upgrade the electrical to accommodate the comm'l equipment I would need (my logic being that when I moved out, the landlord would benefit from having the upgraded power in their for the next tenant.) The compromise is that they agreed to pay $7500 of this expense.

Its also pretty standard to get 3 months free rent starting from when you sign the lease. The logic here is that you get 3 months to do your build out and your rent starts when you open for business 3 months later. I suggest you try to negotiate that the 3 months time clock starts when building permits are issued.

I had kitchen design time (which can't be done until you locate a space), then those plans had to be signed off by a licensed architect (which took 6 weeks, dont' ask me why! icon_mad.gif ). Then it took a freakin' month for local city hall to actually issue the permits!!! (Of course it was right after an election and most of them were busy cleaning out their desks!)

I ate up most of my 3 months in prep work ..... by the time the building permists were issued and we could actually START on the build out, I only had about a month or less left on my free time.

Beause of all of this, its greatly beneficial if you can find a space that had a comm'l kitchen in it previously. The electrical is probably already up to speed, the air ducts and exhaust systems may be there, definitely the drainage requirements are already in (trenching thru a concrete floor for the required drainage is VERY exensive! Ask me how I know! )

MimiFix Posted 30 Mar 2011 , 10:30pm
post #5 of 5

"itsacake" wrote:

Also, pamcakes, not sure what you mean about baking in house and decorating in the shop. Is that allowed where you live? Most places it is not. Besides, the best part of having kitchen space is getting the whole business out of the house so you get the kitchen table back for dinner. LOL

Pamcakes signs on as Dutchess County, NY. The NY Department of Ag & Mkts allows for home-based baking of non-hazardous foods. While pamcakes has an interesting idea, it's not allowed for several reasons, mostly that retail sales is restricted to certain agricultural venues. One of my students wanted to do this and was told "No, or you'll lose the permit." The inspector also ranted about cease and desist...

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