Wiring And Stuff - The Building

Business By alicegop Updated 15 Feb 2007 , 4:47pm by alicegop

alicegop Cake Central Cake Decorator Profile
alicegop Posted 14 Feb 2007 , 9:27pm
post #1 of 9

so the location I like my mom (partner) and my bro (handyman) don't like. Grrrr. I think it is in a nice area and it is super close to my house, which is VERY IMPORTANT! They think the wiring and the gas need work........ Is that the landlords responsibility?

Also, my friend says the landlord pays the garbage and water, that it is part of the triple net, is that true?

8 replies
PieceofCakeAZ Cake Central Cake Decorator Profile
PieceofCakeAZ Posted 14 Feb 2007 , 10:41pm
post #2 of 9

Alice,

Garbage & Water are part of the NNN we pay, but check with the landlord to make absolutely sure.

The wiring & gas is only the responsibility of the landlord if they agree to repair these items in writing. Usually they will only agree to do that if the space has been up for lease for a long time and they are desperate for a tenant. In all likelihood it will be your responsibility to get these issues resolved so if you decide to proceed, definitely call the gas company and get an estimate for the work that will be needed (assuming it is a gas company issue).

Our A/C unit died 2 months after we leased our shop, and the $4000 to buy a new one was 100% our responsibility. icon_eek.gif

When looking at any place to lease, have an electrician come in and give you a full breakdown on the power setup in the building. This is extremely important in our business. You definitely want to have some 208v, 220v, or 240v Phase 3 power available or you won't be able to have most 40q mixers, many electric ovens (which may not be an issue if they have gas to the building), some fridges or freezers, etc. There are phase converters but I haven't heard great things about their reliability.

The equipment we need also pulls a lot of AMPS and some older buildings can only handle 150 or less. Definitely make sure that you have at least 200 AMPS available and 300 would be better.

Signing a lease and find out that you have to upgrade the power would be a serious buzzkill because it could cost $10,000 +.

Best of luck!!!

littlecake Cake Central Cake Decorator Profile
littlecake Posted 15 Feb 2007 , 12:33am
post #3 of 9

my a/c went out last summer and i had to pay it too.

plus put in a new hot water heater....fix the drains, rewire...replumb etc.

i guess every landlord is different....but its my understanding a commercial lease is different.

1 wire alone to the oven costed 350 bucks...it took them like 20 minutes.

cocorum21 Cake Central Cake Decorator Profile
cocorum21 Posted 15 Feb 2007 , 12:43am
post #4 of 9

I just turned down a space for the same reason. It was divided and they didn't run electricity through the side I wanted and he was only willing to contribute to the cost of building out if I wanted to rent two spaces. It would have been too costly for me to rent that space even though the rent itself was a dream. I wouldn't have had enough money left over to buy equipment.

Before signing the lease you could ask the landloard if you could have someone (professional) come and do a check and get an estimate to see if it is worth it for you. That way you will know better if you want to procede and rent the space.

indydebi Cake Central Cake Decorator Profile
indydebi Posted 15 Feb 2007 , 1:34am
post #5 of 9

And if you can get a contractor that specializes in commercial kitchens, you will be a step ahead.

When we were looking at our space, we bluntly told the lady, "Look .... we're not going to pretend we've done this before, so how does all of this work?" We asked about wiring and A/C and how many free months to get it going, yadda yadda. She told us, "Just ask them. The worst that happens is they say no."

So the listed rental rate was $14/sq ft and we got it for $11. We also ask them to install a health-dept approved flooring and upgrade the electrical svc to 400 amps, which they agreed to do. We got our sign space on the big pylon for 1/2 the monthly rate.

Just ask. If they say no, then you re-negotiate. But get a professional commercial kitchen contractor to go thru the space with you. It's pretty standard to do that so you can get estimated costs and stuff that you will need.

Tell your mom and your brother that the odds of finding a place just ready to move into are not that great.

cupcake Cake Central Cake Decorator Profile
cupcake Posted 15 Feb 2007 , 7:10am
post #6 of 9

I am not a fan of a triple net lease. The owner basically pays for nothing, not even his taxes. Usually your lease amount covers his taxes, insurance, and depending on whether you are in a strip mall or free-standing, a maintenance fee. I think owners of property need to be responsible for something. I am sure that whatever he is asking its too much, especially where you are. I would make sure before you sign anything, to have an attorney look at the lease, and certainly spend the money to have it inspected, it could save you a ton in the end. Just my thoughts on the situation. Also, you say it is close to home, but location is important, perhaps your family doesn't see it as a positive move. I would ask them what they don't like about it. Making any business decision is tough, and it would be better to start off with everyone in agreement, if not, it may create some problems somewhere down the road.

alicegop Cake Central Cake Decorator Profile
alicegop Posted 15 Feb 2007 , 2:53pm
post #7 of 9

Thanks everyone! The rent is .48 a square foot, so it is a good price. If i go up to the main street (I would be parallel to the main street, half way in between the 2 main streets) rent is 1 per square foot (both include triple net)

The space hasn't been leased for over 3 years, so basically I feel like I could ASK for the moon....... All they can say is no. Thanks for the advice on getting it in writing, I should know that, but for some reason a giant OH DUH, YES THAT IS A GOOD IDEA came to mind.

My mechanic is an electricity whiz and is going to come check the amperage and stuff (although he is dead off his feet with the flu right now - but that is okay, I'm not in a hurry, am still praying about this whole thing) so if there isn't enough electricity then the deal is off.

Thanks for all the great information it helps A LOT

indydebi Cake Central Cake Decorator Profile
indydebi Posted 15 Feb 2007 , 3:38pm
post #8 of 9
Quote:
Originally Posted by alicegop

My mechanic is an electricity whiz and is going to come check the amperage and stuff (although he is dead off his feet with the flu right now - but that is okay, I'm not in a hurry, am still praying about this whole thing) so if there isn't enough electricity then the deal is off.




Again, be sure he is familiar with a commercial kitchen. Does he know what equipment will be in there and what kind of power each one uses? And upgrading the amps in a place isn't THAT big a deal, so don't be TOO set on it being a deal breaker. Again, ask the owners to pay for the upgrade. After all, they will be the beneficiary if/when you move out .... you're not gonna take it with you, ya know! icon_wink.gif

alicegop Cake Central Cake Decorator Profile
alicegop Posted 15 Feb 2007 , 4:47pm
post #9 of 9

Thanks! He actually is really good at knowing hte amperage for equipment. He has a lot of things that plug in at the shop, I am amazed at how he can calculate this stuff in his head. We went over the equipment and he was able to calculate how much current that is drawing.... I will definately be asking the landlord to pay for the upgrades.

THANKS

Quote by @%username% on %date%

%body%