OT: Question for those that lease/rent commercial buildings....

bigbet1234 · Mar 8, 2008

This can probably go both ways, but what is the general rule when renting a commercial spot that is completely gutted.

Lessee, or lessor responsible for the rebuild

I think I should be responsible for anything special I want done, like walls put up for dividing, my 3 bay sinks, general remodeling stuff.

this guy wants me to come in put up ALL the walls, run the electric, and all flooring. I think a base floor should be put down, linoleum or something and I can add hardwood to a portion if I want.

What is others experience with this situation, maybe we have some lessors that could give an opinion.

lapdance · Mar 8, 2008

I think I should be responsible for anything special I want done, like walls put up for dividing, my 3 bay sinks, general remodeling stuff.

this guy wants me to come in put up ALL the walls, run the electric, and all flooring. I think a base floor should be put down, linoleum or something and I can add hardwood to a portion if I want.

What is others experience with this situation, maybe we have some lessors that could give an opinion.

100% CORRECT. IF HE WANTS YOU TO FIX HIS PLACE UP THEN TELL HIM YOU WILL DEDUCT FROM RENT.

nhoj · Mar 8, 2008

Build out is up to the tenant but should be part of the rental price if you go in and no walls or sub floor you need to pay alot less per month
. It is always better to find a place that has been built out already.

My 1st mall store they required a $150,000 build out and the store I was leasing was prefect for my business with out any work. So I had to put in the most expensive tile floor you ever seen and a pretty high dollar paint job too. But I dont work for free is what I told the mall manager.

fhmesq44 · Mar 8, 2008

It is completely negotiable. Do you have a broker? They should be able to tell you what rental rates are for warm shell, cold shell and fully built out spaces are.

In theory the rent should be appropriate relative to who does the build out. If you have to do it all, then your rent should be far less than a built out space.

KAPPER · Mar 8, 2008

As a general rule of thumb landlords want to provide as little as possible. In a high demand market you may have to take space as-is. If it is in a market with lots of vacancy you can expect the landlord to contribute to your expenses. As an owner of many shopping centers in 90% of our leases we deliver space to tenants in "Vanilla box" Condition. This means, walls drywall sanded and taped and ready for painting. Smooth concrete floor. Minimum electrical outlets to code. 200 AMP electrical service and in some cases a ceiling grid and lighting.

National tentants usually are able to negotiate a Tenant Improvement Allowance on a per foot basis -- usually in the $10 to $20/ft range in Chicago.

Local tenants usually get nothing as they don't have the credit of a national corporation.

If you were opening up your first store at one of my centers with good credit I would probably only offer you the vanilla box scenario that I mentioned above.

Your landlord should install the demising walls between adjacent space but will probably not want to participate in any interior walls or any installation of your plumbing/ sinks etc.

Hope this helps.

bigbet1234 · Mar 9, 2008

yea, im not expecting him to do plumbing, paint or anything, at least get it in some what suitable condition. i mean, the place looks like a 60 yr old basement in need of repair.

i have no problem putting doing plumbing and putting in my 3 phase and whatever divider walls i need, but the hell if i am remodleing his whole space.

KAPPER said:
As a general rule of thumb landlords want to provide as little as possible. In a high demand market you may have to take space as-is. If it is in a market with lots of vacancy you can expect the landlord to contribute to your expenses. As an owner of many shopping centers in 90% of our leases we deliver space to tenants in "Vanilla box" Condition. This means, walls drywall sanded and taped and ready for painting. Smooth concrete floor. Minimum electrical outlets to code. 200 AMP electrical service and in some cases a ceiling grid and lighting.

National tentants usually are able to negotiate a Tenant Improvement Allowance on a per foot basis -- usually in the $10 to $20/ft range in Chicago.

Local tenants usually get nothing as they don't have the credit of a national corporation.

If you were opening up your first store at one of my centers with good credit I would probably only offer you the vanilla box scenario that I mentioned above.

Your landlord should install the demising walls between adjacent space but will probably not want to participate in any interior walls or any installation of your plumbing/ sinks etc.

Hope this helps.

KAPPER · Mar 9, 2008

Let me clarify that it should be in broom clean condition with any of the previous tenants fixtures and demising walls removed if requested.

ProPokerPlayer · Mar 9, 2008

3-1 he wants u to do all this cus he cant afford it himself meaning in 2-3 months tops you'll be looking for another tenant....

bigbet1234 · Mar 9, 2008

Nah, great location. I will see what he says with my proposal. He is willing to work with me.

He wants me in his location long term, which I havent a problem with if he is giving me a fair deal. I would generate tons of traffice for the area and possibly other businesses

ProPokerPlayer said:
3-1 he wants u to do all this cus he cant afford it himself meaning in 2-3 months tops you'll be looking for another tenant....

InsideThePylons · Mar 9, 2008

Make sure the landlord puts in one of these at his expense

bigbet1234 · Mar 10, 2008

He is saying he would give me a rent credit for all the work i put in the building.

Still, to me it's a hassal to have to deal with it. I'm still improving his space at my cost and time.