One Fat Frog Restaurant Equipment helps startup restaurants, convenience stores, bars and grills open from the ground up just about every day. So you’re looking to startup a restaurant and one of the first steps to think about are the fixed monthly costs like the lease. That being said let’s look at some elements of a commercial lease and what seems to be standard in the Florida market:
- most commercial leases run 3-5 years. Occasionally you may find a 1 year lease… but one should question improvements and branding that will be tied to that location… you just get clients trained to come to that location (ie- in the rhythm of their day) and then you may move? Moving can be costly, time consuming and also confusing to your existing customer base.
- Triple net — all in- sales tax… important things to know.. what is covered under the triple net, are you responsible for sales tax or does your price include it? Are you responsible for property taxes? Some properties actually call for this. Are you responsible for a/c or other repairs?
- Build out- will your landlord give you time for build out, or monies or will they build out or complete interior? Will they credit you for any capital improvements on the property- these are all points for negotiating.
We would also encourage you to look at loopnet.net and see what comparable properties are going for. In the past we’ve had landlords post better prices there, or been able to pull down demographic data on comparables to negotiate for better price or terms. All important factors when it comes to a commercial lease. Additionally are you signing a personal guarantee?
Don’t take negotiating a restaurant lease easily or quickly… call 407-480-3409 and buy your equipment with us. be sure to check our website restaurantequipmenttogo.com for more tips on starting up your own restaurant.
This article courtesy of One Fat Frog Restaurant Equipment, 407-480-3409.