If you’re taking over a former bakery and you plan on opening a bakery, the space may already be configured for your needs and you’ll only need to make few changes. Johnny wants his restaurant to offer 2 services: one starting at 6:00 pm and the other at 8:30 pm. You’ll pay a pretty penny to be on the high street, but an off-the-beaten-path location could mean you’ll have to spend a lot on marketing to get people to find your restaurant. Whether you decide to hire your own broker or lease a restaurant on your own, it’s important to understand the role of the commercial real estate broker and how they are compensated. The less space, the fewer customers you’ll be able to serve inside the restaurant. If you can lock in a great monthly rent because the space is in disarray when you sign the lease, but you can cheaply transform it, you’re looking at a lot of savings. If your sales are suffering because of external factors like construction on your street or economic problems, your landlord might be open to renegotiation. For one, when you have less square footage of service space, you can pay more attention to your guests and deliver more intimate dining experiences. Finding restaurant space for lease is an exciting journey and involves many steps along the way. Lease negotiations are either handled directly between the landlord and the tenant (sometimes with the broker or agent as the middle man) or between the landlord’s attorney and tenant’s attorney.
Consider which elements you can compromise on, and which ones are must-haves for your restaurant. We never recommend negotiating a lease on your own with a landlord for any restaurant space for lease. Pop-up experiences for brands or restaurants that want to demo their product in a fresh market. He represents the landlord. SIZE. Before Digsy, Andrew was Senior Vice President & Principal of Lee & Associates Commercial Real Estate Services in Irvine, California.
Be wary of spaces, streets, or neighborhoods that you’ve seen get turned over a lot. Yes, you’re a fantastic business person and matcha may be all the rage right now, but if the commercial space or area didn’t work for others, it probably won’t work for you and your matcha cafe. . Here are the key considerations you need to think about before leasing a particular restaurant space: : How much can you afford to pay for your space? Restaurant Space for Lease in Palm Beach Gardens– Large Outdoor Patio! If you are willing to build out a space you will have more options.
Do you have savings that you could dip into in case of difficult times? Securing a beautiful location that you can’t afford could result in you not having enough to pay your bills or cover the other startup costs associated with opening a restaurant. Most commercial areas should allow restaurant use, but certain neighborhoods may have additional restrictions. The space you choose for your restaurant can make or break the business.
Then an outdoor space should be a must on your list. However, transforming a former dentist’s office into a restaurant would take more work, time, and money. All rights reserved. You go in for allergy medicine and leave with Claritin, When you factor in things like the cost of the. Mark provides site selection, lease negotiations, real estate consulting and restaurant sales to fast growing brands and independent restaurateurs. Whether you read up on leasing laws, connect with other restaurant owners to learn from their experience or reach out to an experienced restaurant consultant, actively learning about restaurant leases before diving in head first will make a difference. If your realtor shows you a space that’s over budget but hits all of your marks, would you be willing to stretch your budget? Take your time to find a location that will help your business thrive. Tom Scarda, CEO and Founder of The Franchise Academy, recommends that restaurateurs thoroughly research a commercial space’s location based on these eight factors: Do you want to be in a well-established area, or one that’s up and coming? ( for example, pizza, Mexican food, sushi), Leasing a Restaurant Space: The Lease Process.
If you are looking for 2nd generation space, you can search for vacant former restaurant space or buy an existing operational restaurant and convert to your concept. Many restaurateurs underestimate how much time is involved to find a good restaurant space location and negotiate a lease agreement. There’s no harm in asking. Consider how much more room you’ll need for a private dining space. While either of those options has its pros and cons, you need to make sure that your target market either lives there or frequently visits that area. If you think your fine dining sushi establishment in suburban Seattle will draw $100,000 in monthly revenue, you can spend between $5,000 and $10,000 a month on your space. Let your restaurant’s concept and budget dictate the size of the commercial space you need. You will be taken more seriously if you work with an experienced and well known commercial real estate agent or broker.
Are you thinking about hiring an agent? Give it a shot here. Similar to how real estate agents ask for more so that they secure more during negotiations, you want to do the same thing. They were even named one of Canada’s Best New Restaurants! The commercial space can comfortably seat 48 people (or 24 tables for 2). Good luck!
Take your time to find a location that will help your business thrive. You should arrange insurance during the lease negotiation period.